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Smoking Persistence Across Countries: An Analysis Using Semi-Parametric Dynamic Panel Data Models with Selectivity

Dimitris Christelis () and Anna Sanz-de-Galdeano

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

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 taken into account. We also uncover large differences in true state dependence across countries and relate these differences to discrepancies in smoking regulations, social norms on and tolerance towards smoking behaviour, and awareness of the health risks associated with smoking.

Keywords: smoking; panel data; selectivity (search for similar items in EconPapers)
JEL-codes: C33 C34 D12 I10 I12 (search for similar items in EconPapers)
Date: 2009-09-01
New Economics Papers: this item is included in nep-hea
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Working Paper: Smoking Persistence Across Countries: An Analysis Using Semi-Parametric Dynamic Panel Data Models with Selectivity (2009) Downloads
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