Tobacco spending and its crowd-out of other goods
By: Susan H. Busch ... [et al.].
Contributors: Busch, Susan H.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10974; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10974.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Smoking -- Economic aspects.; Consumer behavior.
Description: "Smoking is an expensive habit.  Smoking households spend, on average, more than $1000 annually on cigarettes.  For households in which some members smoke, smoking expenditures crowd-out other purchases, which may affect other household members, as well as the smoker.  We empirically analyze how expenditures on tobacco crowd out consumption of other goods, estimating the patterns of substitution between tobacco products and other expenditures.  We use the Consumer Expenditure Survey (1995 to 2001), which we complement with regional price data, and state cigarette prices.  We estimate a consumer demand system of expenditures on cigarettes, food, alcohol, housing, apparel, transportation, medical care and controls for socio-economic variables and other sources of observable heterogeneity.  Descriptive data indicate that, compared to non-smokers, smokers spend less on housing.  Results from the demand system indicate that as the price of cigarettes rises, households increase the quantity of food purchased, and, in some samples, reduce the quantity of apparel and housing purchased"--National Bureau of Economic Research web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/6/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.