Cigarette smoking in Indonesia: examination of a myopic model of addictive behaviour

Type Journal Article - International journal of environmental research and public health
Title Cigarette smoking in Indonesia: examination of a myopic model of addictive behaviour
Author(s)
Volume 7
Issue 6
Publication (Day/Month/Year) 2010
Page numbers 2473-2485
URL http://www.mdpi.com/1660-4601/7/6/2473
Abstract
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.

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