Determinants of Smoking Cessation: A Panel Data Analysis Using HRS

33 Pages Posted: 9 Dec 2019

See all articles by Kajal Lahiri

Kajal Lahiri

State University of New York (SUNY) at Albany, College of Arts and Sciences, Economics

Xian Li

affiliation not provided to SSRN

Date Written: November 22, 2019

Abstract

Using longitudinal data of HRS from, this paper analyzes older smokers’ participation decision and cigarettes consumption decisions using two-part and hurdle models with correlated random effects. This study extends the existing literature by incorporating both cigarette prices and health shocks in one unified framework. Our estimates indicate that raising cigarette price plays an effective role in both reducing participation and amount of consumption of cigarettes. Simultaneously, health shocks like diagnosed heart diseases and cancers are found to raise the probability to quit smoking substantially, which verifies the curative aspect of quitting behavior in the elderly. However, if the smoker does not quit even after a health shock, the shock shows a weak effect in reducing smoking intensity. By a decomposition analysis, we show that whereas both health shocks and cigarette prices explain the reduction in smoking prevalence, increases in cigarette prices are main reasons for the drop in smoking intensity over the period of 1992-2010.

Keywords: Smoking cessation, Health shocks, Hurdle model, Correlated random effects, Selfselection

JEL Classification: I12, I18, C23, C25

Suggested Citation

Lahiri, Kajal and Li, Xian, Determinants of Smoking Cessation: A Panel Data Analysis Using HRS (November 22, 2019). Available at SSRN: https://ssrn.com/abstract=3491544 or http://dx.doi.org/10.2139/ssrn.3491544

Kajal Lahiri (Contact Author)

State University of New York (SUNY) at Albany, College of Arts and Sciences, Economics ( email )

Department of Economics
1400 Washington Avenue
Albany, NY 12222
United States
518-442 4758 (Phone)
518-442 4736 (Fax)

HOME PAGE: http://www.albany.edu/~klahiri

Xian Li

affiliation not provided to SSRN

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
16
Abstract Views
119
PlumX Metrics