Cigarette smoking in Indonesia: examination of a myopic model of addictive behaviour.
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.
Hidayat
Budi
B
Faculty of Public Health, the University of Indonesia, Kampus FKM UI, Depok, Indonesia. b_hidayat@hotmail.com
Thabrany
Hasbullah
H
D016739:Behavior, Addictive / Q000191:economics / Q000453:epidemiology* / Q000523:psychology; D006306:Health Surveys; D006801:Humans; D007214:Indonesia / Q000453:epidemiology; D008960:Models, Psychological; D015233:Models, Statistical; D012044:Regression Analysis; D012907:Smoking / Q000009:adverse effects / Q000191:economics / Q000453:epidemiology* / Q000523:psychology; D013223:Statistics as Topic