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Smoking Persistence in Europe: A Semi-Parametric Panel Data Analysis with Selectivity

Dimitris Christelis () and Anna Sanz-de-Galdeano

No 403, Working Papers from Barcelona Graduate School of Economics

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 panel data selection methods, applied to both the smoking participation and the cigarette consumption decision. We find that for both smoking decisions true state dependence is generally much smaller, but still important, when unobserved individual heterogeneity is accounted for. 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: 2009-10
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Working Paper: Smoking persistence in Europe: A semi-parametric panel data analysis with selectivity (2010) Downloads
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