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ON THE USE OF PANEL DATA METHODS TO ESTIMATE RATIONAL ADDICTION MODELS
Author(s) -
Baltagi Badi H.
Publication year - 2007
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/j.1467-9485.2007.00402.x
Subject(s) - panel data , macro , econometrics , consumption (sociology) , economics , alcohol consumption , rational expectations , addiction , computer science , psychology , alcohol , sociology , social science , biochemistry , chemistry , neuroscience , programming language
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.