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Factors Influencing the Consumption of Alcohol and Tobacco: the use and abuse of economic models
Author(s) -
GODFREY CHRISTINE
Publication year - 1989
Publication title -
british journal of addiction
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.424
H-Index - 193
eISSN - 1360-0443
pISSN - 0952-0481
DOI - 10.1111/j.1360-0443.1989.tb00709.x
Subject(s) - consumption (sociology) , estimation , economics , public economics , addiction , economic model , alcohol consumption , econometrics , microeconomics , psychology , alcohol , psychiatry , sociology , social science , biochemistry , chemistry , management
Summary This paper is concerned with the use of economic models in the debate about the role that tax increases and restrictions on advertising should play in reducing the health problems that arise from the consumption of alcohol and tobacco. It is argued that properly specified demand models that take account of all the important factors that influence consumption are required, otherwise inadequate modelling may lead to misleading estimates of the effects of policy changes. The ability of economics to deal with goods such as alcohol and tobacco that have addictive characteristics receives special attention. Recent advances in economic theory, estimation techniques and statistical testing are discussed, as is the problem of identifying policy recommendations from empirical results.