A censored system of cigarette and alcohol consumption

Shew Jiuan B. Su*, Steven T. Yen

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

48 Citations (Scopus)

Abstract

Many previous studies of US cigarette and alcohol consumption have focused on single equations. However, the addictive nature of consumption suggests that it is more appropriate to model these products as a system. We propose a two-step estimation procedure and apply the procedure to a system of equations for cigarette, beer and wine consumption. Results differ from those derived from an existing two-step procedure. Findings suggest that consumption of cigarettes, beer and wine is responsive to income changes but the elasticities are rather small. Personal physiques, education, age, race, ethnicity, health, gender, employment status, and regions also play significant roles in consumption.

Original languageEnglish
Pages (from-to)729-737
Number of pages9
JournalApplied Economics
Volume32
Issue number6
DOIs
Publication statusPublished - 2000
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics

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