The crowding-out effects of tobacco and alcohol where expenditure shares are low: Analyzing expenditure data for Taiwan

Pu, Cheng Yun; Lan, Virginia M.; Chou, Yiing Jenq; Lan, Chung Fu

doi:10.1016/j.socscimed.2008.01.007

Cited by 40 publications

(47 citation statements)

References 21 publications

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“…We found that spending on tobacco crowds out expenditures on education and clothing for rural and urban households and expenditures on food for low- and middle-income households. Similar results have been found in other low- and middle-income countries such as India,10 China,17 18 Indonesia19 and Taiwan 20…”

Section: Discussionsupporting

confidence: 88%

Tobacco expenditure and its implications for household resource allocation in Cambodia

2011

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The first analysis of the study showed that increased education is associated with lower daily smoking, and the second analysis revealed that expenditures on tobacco crowds out expenditures on education. Combining these two results points to a vicious circle where low education means higher likelihood of smoking, which in turn results in lower spending on education. Such budget allocation clearly has negative intergenerational consequences.

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Section: Discussionsupporting

confidence: 88%

Tobacco expenditure and its implications for household resource allocation in Cambodia

2011

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“…However, most of the studies investigating the crowding-out effects of tobacco expenditures assert that tobacco money crowds out expenditures on food and other basic needs. 8,11–13 Behavioral changes associated with individuals’ quitting tobacco use and their effects on household consumption patterns would be important to understand, and future studies are needed to address these issues. Further research on households’ responses to having increased money because of individual household members’ quitting tobacco use could inform better study design.…”

Section: Discussionmentioning

confidence: 99%

“…Published reports on the nexus between tobacco use and nutrition have found that households divert a significant amount of scarce income to tobacco products, 6–10 crowding out expenditure on basic needs, such as food, health, and education. 8,11–13 This diversion of funds, in turn, exacerbates the effects of poverty, including the nutritional status of children. 14–19 An earlier study by Efroymson et al 6 reported that the average male cigarette smoker in Bangladesh spent more than twice as much on cigarettes as the per capita expenditure on clothing, housing, health, and education combined; that a typical poor smoker could add more than 500 calories to the diet of 1 or 2 children by eliminating his or her daily tobacco expenditure; and that an estimated 10.5 million malnourished people could have an adequate diet if money on tobacco were spent on food instead.…”

Section: Introductionmentioning

confidence: 99%

Money Gone Up in Smoke: The Tobacco Use and Malnutrition Nexus in Bangladesh

Husain

Virk-Baker

Parascandola

et al. 2017

Annals of Global Health

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BACKGROUND The tobacco epidemic in Bangladesh is pervasive. Expenditures on tobacco may reduce money available for food in a country with a high malnutrition rate. OBJECTIVES The aims of the study are to quantify the opportunity costs of tobacco expenditure in terms of nutrition (ie, food energy) forgone and the potential improvements in the household level food-energy status if the money spent on tobacco were diverted for food consumption. METHOD We analyzed data from the 2010 Bangladesh Household Income and Expenditure Survey, a nationally representative survey conducted among 12,240 households. We present 2 analytical scenarios: (1) the lower-bound gain scenario entailing money spent on tobacco partially diverted to acquiring food according to households’ food consumption share in total expenditures; and (2) the upper-bound gain scenario entailing money spent on tobacco diverted to acquiring food only. Age- and gender-based energy norms were used to identify food-energy deficient households. Data were analyzed by mutually exclusive smoking-only, smokeless-only, and dual-tobacco user households. FINDINGS On average, a smoking-only household could gain 269–497 kilocalories (kcal) daily under the lower-bound and upper-bound scenarios, respectively. The potential energy gains for smokeless-only and dual-tobacco user households ranged from 148–268 kcal and 508–924 kcal, respectively. Under these lower- and upper-bound estimates, the percentage of smoking-only user households that are malnourished declined significantly from the baseline rate of 38% to 33% and 29%, respectively. For the smokeless-only and dual-tobacco user households, there were 2–3 and 6–9 percentage point drops in the malnutrition prevalence rates. The tobacco expenditure shift could translate to an additional 4.6–7.7 million food-energy malnourished persons meeting their caloric requirements. CONCLUSIONS The findings suggest that tobacco use reduction could facilitate concomitant improvements in population-level nutrition status and may inform the development and refinement of tobacco prevention and control efforts in Bangladesh.

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“…Sivakumar & Bhat (2002), as well as, Ye & Pendyala (2005) develop and explore the FMNL, whileboth Mullahy & Robert (2010) and Mullahy (2010) have considered some very interesting aspects of the performance of these models. The applications of the fractional multinomial logit model have considered time use in the household, household transport time, statewide commodity flows and portfolio allocations, to date, the model has not been applied to household budget share analysis, although Pu, Lan, Chou & Lan (2008) estimate a bivariate fractional logit model, equation by equation, in their analysis of tobacco substitution effects.…”

Section: Methodsmentioning

confidence: 99%

On the performance of fractional multinomial response models for estimating Engel Curves

Koch

2015

Agrekon

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Engel curves are often estimated within a linear, or at least approximately linear system of equations. However, Engel curves are required to lie on or within the unit interval, while summing to unity. These restrictions are not easily accommodated within a linear system. Therefore, we apply the fractional multinomial logit model in our estimation of expenditure shares, because it more readily accommodates these theoretical restrictions. Within our estimation subsample from the South African Income and Expenditure Survey, we find that accounting for these restrictions within the fractional multinomial logit model provides a better fit to the data than does the standard linear system.

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The crowding-out effects of tobacco and alcohol where expenditure shares are low: Analyzing expenditure data for Taiwan

Cited by 40 publications

References 21 publications

Tobacco expenditure and its implications for household resource allocation in Cambodia

Tobacco expenditure and its implications for household resource allocation in Cambodia

Money Gone Up in Smoke: The Tobacco Use and Malnutrition Nexus in Bangladesh

On the performance of fractional multinomial response models for estimating Engel Curves

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