Addiction and interaction between alcohol and tobacco consumption

Pierani, Pierpaolo; Tiezzi, Silvia

doi:10.1007/s00181-008-0220-3

Cited by 52 publications

(42 citation statements)

References 36 publications

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“…Cross-price elasticities for beer, sprits, wine cider, and tobacco are estimated indicating that tobacco is a complement to all considered alcoholic beverages. Other aggregate data based analyses are for instance Goel and Morey (1995), Dee (1999), Bask and Melkerson (2004), and Pierani and Tiezzi (2009).…”

Section: Introductionmentioning

confidence: 99%

Tobacco and alcohol: complements or substitutes?

et al. 2012

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThe question of whether alcohol and tobacco are consumed as complements or substitutes is crucial for determining the side-effects of anti-smoking policies. Numerous papers have empirically addressed this issue by estimating demand systems for alcohol and tobacco and subsequently calculating cross-price effects. However, this traditional approach is often seriously hampered by insufficient price variation observed in survey data. We therefore suggest an alternative instrumental variables approach that statistically mimics an experimental study and does not rely on prices as explanatory variables. This approach is applied using German survey data. Our estimation results suggest that a reduction in tobacco consumption results in a moderate reduction in alcohol consumption. It is demonstrated that this implies that alcohol and tobacco are complements. Hence, we conclude that successful anti-smoking policies will not result in the unintended side-effect of an increased (ab)use of alcohol. complements or substitutes interdependence in consumption tobacco and alcohol insufficient price-variation instrumental variables approach JEL Classification C31 · D12 · I12

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Section: Introductionmentioning

confidence: 99%

Tobacco and alcohol: complements or substitutes?

et al. 2012

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“…While smoking is a form of substance dependence that physiologically influences people's preferences, it has been pointed out that preferences are affected not only by substance dependence but also by process dependence as well. It has also been reported that cross addiction exists among such activities as smoking, drinking, and gambling (Pierani and Tiezzi 2008;Ida and Goto 2007). As such, this section addresses pachinko, a type of Japanese pinball, as a process addiction.…”

Section: Anomaly and Impulsivity For Pachinkomentioning

confidence: 97%

Anomaly, impulsivity, and addiction

Ida

2010

The Journal of Socio-Economics

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There are two behavioral approaches to addiction: rational and irrational. The rational approach assumes that addicts have higher time preference rates and lower risk aversion coefficients-parameters that are interpreted as impulsive preferences. On the other hand, the irrational approach argues that addiction is a consequence of anomalies such as non-expected utility and hyperbolically discounted utility. This paper integrates these two approaches and concludes that anomaly and impulsivity complementarily account for addiction.

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“…Cigars and cigarettes become more diffuse as time goes by, the latter starting from a very low level, with snuff and cut-tobacco declining slowly. Cigars are 23 There is a small recent literature studying the interaction of two or more addictive products (Andersson et al 2006, Lee 2007, Pierani and Tiezzi 2009). With separate goods, such as alcohol and smoking, the cross price elasticity coefficient has the same interpretation as that between, say snuff and cut tobacco; but, clearly, the question of the disentangling the source of addiction, whether physical or habit, does not make sense in the context of products like alcohol and tobacco, given the different substance considered to cause addiction.…”

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confidence: 99%

The Demand for Tobacco in Post-Unification Italy

Ciccarelli

Fraja

2014

SSRN Journal

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This paper studies the demand for tobacco products in post-unification Italy. We construct a very detailed panel dataset of yearly consumption in the 69 Italian provinces from 1871 to 1913, and use it to estimate the demand for tobacco products. We find support for the Becker and Murphy (1988) rational addiction model. The empirical analysis further suggests that, in the period considered, tobacco was a normal good in Italy: its consumption increased with income. Subsequently, we consider separately the components of aggregate tobacco (fine-cut tobacco, snuff, cigars, and cigarettes), and tentatively suggest that habit formation was a stronger factor on the persistence of consumption than physical addiction. The paper ends by showing that the introduction of the Bonsack machine in the early 1890s did not coincide with changes in the structure of the demand for tobacco, suggesting cost driven technological change. Abstract This paper studies the demand for tobacco products in post-unification Italy. We construct a very detailed panel dataset of yearly consumption in the 69 Italian provinces from 1871 to 1913, and use it to estimate the demand for tobacco products. We find support for the Becker and Murphy (1988) rational addiction model. We also find that, in the period considered, tobacco was a normal good in Italy: aggregate tobacco consumption increased with income. Subsequently, we consider separately the four types of products which aggregate tobacco comprises (fine-cut tobacco, snuff, cigars, and cigarettes), and tentatively suggest that habit formation was a stronger factor on the persistence of consumption than physical addiction. The paper ends by showing that the introduction of the Bonsack machine in the early 1890s did not coincide with changes in the structure of the demand for tobacco, suggesting cost driven technological change.JEL Numbers: D11, N33, I18

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Addiction and interaction between alcohol and tobacco consumption

Cited by 52 publications

References 36 publications

Tobacco and alcohol: complements or substitutes?

Tobacco and alcohol: complements or substitutes?

Anomaly, impulsivity, and addiction

The Demand for Tobacco in Post-Unification Italy

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