Munich Personal RePEc Archive

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

Hidayat, Budi and Thabrany, Hasbullah (2010): Cigarette smoking in Indonesia: examination of a myopic model of addictive behaviour. Published in: International Journal of Environmental Research and Public Health , Vol. 7, No. 6 (4. June 2010): pp. 2473-2485.

[img]
Preview
PDF
MPRA_paper_30194.pdf

Download (379kB) | Preview

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.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.