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Smoking persistence in Europe: A semi-parametric panel data analysis with selectivity

Dimitris Christelis () and Anna Sanz-de-Galdeano

No 2010_15, Working Papers from Department of Economics, University of Venice "Ca' Foscari"

Abstract: We study smoking persistence, which can be due to both true state dependence and individual unobserved heterogeneity, in ten European countries. We distinguish between the two sources of persistence by using semi-parametric dynamic panel selection methods, applied to both smoking participation and cigarette consumption. We find that for both smoking decisions true state dependence is generally much smaller when unobserved individual heterogeneity is taken into account, and we also uncover large differences in true state dependence across countries. Finally, allowing for heaping in the reported number of cigarettes smoked considerably improves the fit of our model.

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)
Pages: 44
Date: 2010
New Economics Papers: this item is included in nep-ecm, nep-eff, nep-eur and nep-hea
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