Cigarette smoking in Indonesia: examination of a myopic model of addictive behaviour.

International Journal of Environmental Research and Public Health
Budi Hidayat, Hasbullah Thabrany

Abstract

Using aggregated panel data taken from three waves of the Indonesian Family Life Survey (1993-2000), this article tests the myopic addiction behaviour of cigarette demand. Sensitivity analysis is done by examining a rational addiction behavior of cigarette demand. The results provide support for myopic addiction. The short- and long-run price elasticities of cigarette demand are estimated at -0.28 and -0.73 respectively. Excise taxes are more likely to act as an effective tobacco control in the long-run rather than a major source of government revenue.

References

Nov 1, 1989·British Journal of Addiction·S Chapman
Mar 26, 2005·Health Economics·Badi H BaltagiTor Helge Holmås
Apr 29, 2008·Journal of Health Economics·Evan Blecher
Mar 3, 2010·International Journal of Environmental Research and Public Health·Budi Hidayat, Subhash Pokhrel

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