An economic analysis of addictive behavior: The case of cigarette smoking.
Item
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Title
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An economic analysis of addictive behavior: The case of cigarette smoking.
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Identifier
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AAI8821072
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identifier
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8821072
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Creator
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Chaloupka, Frank Joseph, IV.
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Contributor
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Adviser: Michael Grossman
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Date
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1988
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Language
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English
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Publisher
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City University of New York.
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Subject
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Economics, General
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Abstract
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This dissertation applies a theoretical model of rational addictive behavior to cigarette smoking and tests the hypothesis of the model empirically using the Second National Health and Nutrition Examination Survey, a near random sample of the population of the United States during the period from February, 1976 through February, 1980. Cigarette demand equations which explicitly account for the fact that cigarette smoking is an addictive behavior are derived from the Becker-Murphy theoretical model of rational addictive behavior. The effectiveness of two alternative policy measures, increased excise taxation of cigarettes and restrictions on cigarette smoking in public places, is then examined within the addictive framework.;A brief history of the various policies used in the anti-smoking campaign is followed by a review of the economics literature examining the effectiveness of these policies. The various factors which distinguish the consumption of addictive goods from other consumer goods are then discussed, particularly as they relate to cigarette smoking. After a discussion of the theoretical model, cigarette demand equations are derived under the competing hypotheses of non-addictive and addictive behavior and myopic and rational behavior.;Using instrumental variables techniques, various cigarettes demand equations are estimated, with the results generally supporting the hypothesis of the model. In particular, significant intertemporal linkages are found in cigarette consumption, confirming the hypothesis that cigarette smoking is addictive. Future events are found to have a significant impact on current consumption, implying that individuals are not behaving myopically. The long run price elasticities of demand implied by the estimates obtained for the addictive demand equations fall in the range from {dollar}-{dollar}0.40 to {dollar}-{dollar}0.28, significantly larger than those obtained from demand equations estimated under the hypothesis of non-addictive behavior. Clean indoor air laws are found to have a significant negative impact on average cigarette consumption. Mixed evidence is obtained concerning the impact of stressful life cycle events on cigarette consumption, with stressful events generally leading to increased consumption. Finally, substantial differences are noted between the cigarette smoking behavior of men and women and between individuals of different ages and with different levels of educational attainment.
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Type
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dissertation
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Source
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PQT Legacy CUNY.xlsx
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degree
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Ph.D.
