Cigarette smoking in Indonesia: Examination of a myopic model of addictive behaviour

Budi Hidayat, Hasbullah Thabrany

Research output: Contribution to journalArticlepeer-review

12 Citations (Scopus)

Abstract

Using aggregated panel data taken from three waves of the Indonesian Family Life Survey (1993-2000), this article tests the myopic addiction behaviour of cigarette demand. Sensitivity analysis is done by examining a rational addiction behavior of cigarette demand. The results provide support for myopic addiction. The short- and long-run price elasticities of cigarette demand are estimated at -0.28 and -0.73 respectively. Excise taxes are more likely to act as an effective tobacco control in the long-run rather than a major source of government revenue.

Original languageEnglish
Pages (from-to)2473-2485
Number of pages13
JournalInternational Journal of Environmental Research and Public Health
Volume7
Issue number6
DOIs
Publication statusPublished - Jun 2010

Keywords

  • Cigarette consumption
  • Indonesia
  • Methodology for panel data
  • Myopic addictive models

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