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Tobacco and alcohol: complements or substitutes? : a statistical guinea pig approach

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dc.creator Tauchmann, Harald
dc.creator Göhlmann, Silja
dc.creator Requate, Till
dc.creator Schmidt, Christoph M.
dc.date 2006
dc.date.accessioned 2013-10-16T07:00:46Z
dc.date.available 2013-10-16T07:00:46Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18603
dc.identifier ppn:51988163X
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18603
dc.description The question of whether two drugs – namely alcohol and tobacco – are used as complements or substitutes is of crucial interest if side-effects of anti-drug policies are considered. 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 often is 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 to German survey data. Our estimation results suggest that a reduction in tobacco consumption results in a reduction in alcohol consumption, too. It is shown theoretically that this implies that alcohol and tobacco are complements. Hence, we conclude that successful antismoking policies will not result in the unintended side-effect of an increased (ab)use of alcohol.
dc.language eng
dc.relation RWI Discussion Papers 52
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject D12
dc.subject C31
dc.subject I12
dc.subject ddc:330
dc.subject Interdependence in consumption
dc.subject tobacco and alcohol
dc.subject instrumental variables approach
dc.subject Drogenkonsum
dc.subject Rauchen
dc.subject Alkoholkonsum
dc.subject Konsuminterdependenz
dc.subject Komplementärgut
dc.subject Instrumentalvariablen-Schätzmethode
dc.subject Schätzung
dc.subject Deutschland
dc.title Tobacco and alcohol: complements or substitutes? : a statistical guinea pig approach
dc.type doc-type:workingPaper


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