KILIÇ, Dilek Yıldız Technical University - Department of Chemical Engineering, Turkey

A PANEL DATA ANALYSIS OF CIGARETTE CONSUMPTION: THE CASE OF THE UK

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This paper aims to examine the determinants of smoking intensity in the UK over the period 1991- 2008 using panel data methods. Since the dependent variable consists of nonnegative integer values and the data set has a panel survey feature (British Household Panel Survey-BHPS), panel count data models are used in the analysis. The existence and magnitude of overdispersion indicate the Poisson model as the preferred specification. Although a range of covariates are introduced to control for individual heterogeneity, an individual-specific random effects term is also included in the analysis to account for the unobserved differences in individual behaviour. The results confirm the hypothesis that education has a negative impact on smoking participation particularly in high-income countries. This negative effect is also found to be gradually increased with the level of educational attainment.

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Cigarette consumption , count data , panel data , education

Journal Of Economics an‎d Administrative Sciences

142