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On the use of panel data methods to estimate rational addiction models

Citation

Baltagi, Badi H. (2007). On the use of panel data methods to estimate rational addiction models. Scottish Journal of Political Economy, 54(1), 1-18.

Abstract

This paper reviews some of the econometrics problems faced when estimating a rational addiction model of Becker and Murphy using panel data. This is illustrated with three empirical applications. The first application looks at cigarette consumption using macro panel data on American states over time. The second application looks at liquor consumption using macro panel data on American states over time. The third application uses micro-panel data on Russian alcohol consumption.

URL

http://dx.doi.org/10.1111/j.1467-9485.2007.00402.x

Reference Type

Journal Article

Year Published

2007

Journal Title

Scottish Journal of Political Economy

Author(s)

Baltagi, Badi H.