Smoking Persistence Across Countries: A Panel Data Analysis
49 Pages Posted: 29 Jul 2009 Last revised: 17 Jun 2011
There are 2 versions of this paper
Smoking Persistence Across Countries: A Panel Data Analysis
Smoking Persistence Across Countries: An Analysis Using Semi-Parametric Dynamic Panel Data Models with Selectivity
Date Written: June 3, 2011
Abstract
We provide new cross-country evidence on smoking persistence in Europe, which can be due to both true state dependence and individual unobserved heterogeneity. We distinguish between the two by using semi-parametric panel data selection methods, applied to both the smoking participation and the cigarette consumption decision. We find that for both smoking decisions true state dependence is generally much smaller, but still important, when unobserved individual heterogeneity is accounted for. We uncover large differences in true state dependence across countries and relate them to discrepancies in regulations, social norms on and tolerance towards smoking, and awareness of its health risks.
Keywords: smoking, panel data, selectivity
JEL Classification: C33, C34, D12, I10, I12
Suggested Citation: Suggested Citation
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