Munich Personal RePEc Archive

Does tobacco spending crowd-out the household budget? Preliminary results using nationwide survey data

Kostakis, Ioannis (2020): Does tobacco spending crowd-out the household budget? Preliminary results using nationwide survey data.

[img]
Preview
PDF
MPRA_paper_102251.pdf

Download (212kB) | Preview

Abstract

The aim of this paper is to examine the crowding out effect of tobacco spending on other household commodity groups. It uses a national representative household sample survey retrieved from Hellenic Statistical Authority for the year 2017. A system of conditional Engel curve formula was estimated for a set of 12 commodity groups based on Eurostat categorization. Results reveal that spending on tobacco leads to a household budget allocation having a negative effect on certain commodity groups such as food, clothes, health and durables and positive on communication, education and spending on hotels and restaurants. Policy implications suggest that a regressive policy recommendation that result a cut tobacco effect could lead to a better wellbeing and household health status with a more sustainable consuming behavior.

Logo of the University Library LMU Munich
MPRA is a RePEc service hosted by
the University Library LMU Munich in Germany.