Structural Change in Cigarette Demand: Cusum Tests using Panel Data

John Schroeter and Aju Fenn

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: We conduct custom tests of structural change in a rational addiction model of cigarette demand estimated using a panel of annual time series of state−level data. In contrast to the one previous application of custom tests to the question of cigarette demand stability, our results provide strong evidence of downward shifts in demand during the modern era of health warnings and anti−smoking campaigns.

Date: 2005-01-01
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Journal Article: Structural change in cigarette demand: cusum tests using panel data (2005)
Working Paper: Structural Change in Cigarette Demand: Cusum Tests Using Panel Data (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genstf:200501010800001083

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