Show simple item record Busch, SH Jofre-Bonet, M Falba, TA Sindelar, JL
dc.coverage.spatial New Zealand 2010-12-08T20:38:00Z 2004
dc.identifier 349
dc.identifier.citation Appl Health Econ Health Policy, 2004, 3 (4), pp. 263 - 272
dc.description.abstract Smoking is an expensive habit. Smoking households spend, on average, more than $US1000 annually on cigarettes. When a family member quits, in addition to the former smoker's improved long-term health, families benefit because savings from reduced cigarette expenditures can be allocated to other goods. For households in which some members continue to smoke, smoking expenditures crowd-out other purchases, which may affect other household members, as well as the smoker. We empirically analyse how expenditures on tobacco crowd-out consumption of other goods, estimating the patterns of substitution and complementarity between tobacco products and other categories of household expenditure. We use the Consumer Expenditure Survey data for the years 1995-2001, which we complement with regional price data and state cigarette prices. We estimate a consumer demand system that includes several main expenditure categories (cigarettes, food, alcohol, housing, apparel, transportation, medical care) and controls for socioeconomic variables and other sources of observable heterogeneity. Descriptive data indicate that, comparing smokers to nonsmokers, smokers spend less on housing. Results from the demand system indicate that as the price of cigarettes rises, households increase the quantity of food purchased, and, in some samples, reduce the quantity of apparel and housing purchased.
dc.description.sponsorship This research was supported by grants from the Robert Wood Johnson Foundation (#039787). en_US
dc.format.extent 263 - 272
dc.language eng
dc.language.iso en_US en_US
dc.relation.ispartof Appl Health Econ Health Policy
dc.subject Adult
dc.subject Budgets
dc.subject Costs and Cost Analysis
dc.subject Data Collection
dc.subject Family Characteristics
dc.subject Female
dc.subject Humans
dc.subject Male
dc.subject Models, Economic
dc.subject Smoking
dc.subject United States
dc.title Burning a hole in the budget: tobacco spending and its crowd-out of other goods.
dc.type Journal Article
dc.department Economics
pubs.issue 4
pubs.organisational-group /Duke
pubs.organisational-group /Duke/Trinity College of Arts & Sciences
pubs.organisational-group /Duke/Trinity College of Arts & Sciences/Economics
pubs.publication-status Published
pubs.volume 3
dc.identifier.eissn 1179-1896

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