Journal
HEALTH ECONOMICS
Volume 13, Issue 10, Pages 1063-1080Publisher
WILEY
DOI: 10.1002/hec.930
Keywords
co-addiction; dynamic panel model; GMM; attrition bias
Funding
- NIAAA NIH HHS [R01-AA12162] Funding Source: Medline
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In the last few years, the price of cigarettes has increased considerably in the USA. In addition, a number of states have also imposed smoking bans. These increases in the cost and barriers to smoking have created a natural experiment to study relationships between smoking and drinking behaviors. In this study, we employ data from the first six waves of the Health and Retirement Survey (HRS) to analyze the effects of smoking bans and cigarette prices on alcohol consumption. We also test if past cigarette and alcohol consumption affect current alcohol consumption as predicted by co-addiction models. We estimate dynamic panel models using GMM estimators. Our approach allows us to obtain consistent estimates irrespective of the number of time periods. The three main findings of this study are: (1) there is positive reinforcement effect of past cigarette consumption on current alcohol consumption, (2) smoking bans reduce alcohol consumption and (3) there is a positive effect of cigarette prices on alcohol consumption. Copyright (C) 2004 John Wiley Sons, Ltd.
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