Cigarette smoking in Indonesia: examination of a myopic model of addictive behaviour

Budi Hidayat and Hasbullah Thabrany

MPRA Paper from University Library of Munich, Germany

Abstract: Using aggregated panel data taken from three waves of the Indonesian Family Life Survey (1993–2000), this article tests the myopic addiction behaviour of cigarette demand. Sensitivity analysis is done by examining a rational addiction behavior of cigarette demand. The results provide support for myopic addiction. The short- and long-run price elasticities of cigarette demand are estimated at −0.28 and −0.73 respectively. Excise taxes are more likely to act as an effective tobacco control in the long-run rather than a major source of government revenue.

Keywords: cigarette consumption; myopic addictive models; methodology for panel data; Indonesia (search for similar items in EconPapers)
JEL-codes: C33 C52 I12 (search for similar items in EconPapers)
Date: 2010-03-22, Revised 2010-05-17
New Economics Papers: this item is included in nep-hea and nep-mic
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Published in International Journal of Environmental Research and Public Health 6.7(2010): pp. 2473-2485

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/30194/1/MPRA_paper_30194.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:30194

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().