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Smoking persistence across countries: A panel data analysis

Dimitris Christelis () and Anna Sanz-de-Galdeano

Journal of Health Economics, 2011, vol. 30, issue 5, 1077-1093

Abstract: We provide new cross-country evidence on smoking persistence in Europe, which can be due to both true state dependence and individual unobserved heterogeneity. We distinguish between the two by using semi-parametric nonlinear panel data methods, applied to both the smoking participation and the cigarette consumption decision, which we allow to be correlated. We find that for both smoking decisions true state dependence is generally much smaller, but still important, when unobserved individual heterogeneity is accounted for, regardless of residential location. We uncover large differences in true state dependence across countries and relate them to discrepancies in regulations, social norms on and tolerance towards smoking, and awareness of its health risks.

Keywords: Smoking; Panel data; State dependence; Selectivity (search for similar items in EconPapers)
JEL-codes: C33 C34 D12 I10 I12 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:30:y:2011:i:5:p:1077-1093

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Journal of Health Economics is currently edited by J. P. Newhouse, A. J. Culyer, R. Frank, K. Claxton and T. McGuire

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