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An Assessment of the Forward-Looking Hypothesis of the Demand for Cigarettes

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  • Robert Kaestner
  • Kevin Callison

Abstract

In this article we develop a model of the demand for cigarettes that incorporates forward-looking behavior related to the adverse health consequences of smoking and the addictive nature of cigarettes. The model results in several testable hypotheses that we use to examine the extent to which smokers exhibit forward-looking behavior. Results of our study are generally supportive of the notion that smokers behave in a forward-looking manner.

Suggested Citation

  • Robert Kaestner & Kevin Callison, 2018. "An Assessment of the Forward-Looking Hypothesis of the Demand for Cigarettes," NBER Working Papers 24620, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24620
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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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