Smoking Persistence Across Countries: A Panel Data Analysis

49 Pages Posted: 29 Jul 2009 Last revised: 17 Jun 2011

See all articles by Dimitris Christelis

Dimitris Christelis

Adam Smith Business School, University of Glasgow; Centre for Studies in Economics and Finance (CSEF), University of Naples Federico II; Center for Financial Studies (CFS); Netspar

Anna Sanz-de-Galdeano

Universitat Autònoma de Barcelona; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

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

Christelis, Dimitrios and Sanz De Galdeano, Anna, Smoking Persistence Across Countries: A Panel Data Analysis (June 3, 2011). Available at SSRN: https://ssrn.com/abstract=1440297 or http://dx.doi.org/10.2139/ssrn.1440297

Dimitrios Christelis (Contact Author)

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Centre for Studies in Economics and Finance (CSEF), University of Naples Federico II ( email )

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Anna Sanz De Galdeano

Universitat Autònoma de Barcelona ( email )

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Spain

IZA Institute of Labor Economics

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Bonn, D-53072
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