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.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: cigarette consumption; myopic addictive models; methodology for panel data; Indonesia
• Subjects: I - Health, Education, and Welfare > I1 - Health > I12 - Health Behavior; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C52 - Model Evaluation, Validation, and Selection; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models

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