| Type | Journal Article - Scottish Journal of Political Economy |
| Title | On the use of panel data methods to estimate rational addiction models |
| Author(s) | |
| Volume | 54 |
| Issue | 1 |
| Publication (Day/Month/Year) | 2007 |
| Page numbers | 1-18 |
| URL | http://users.auth.gr/~kpap/Seminars/Baltagi.pdf |
| Abstract | This paper reviews some of the econometrics problems faced when estimating a rational addiction model of Becker and Murphy (1988) using panel data. This is illustrated with three empirical applications. The Örst application looks at cigarette consumption using macro panel data on American states over time (see Baltagi and Gri¢ n (2001)). The second application looks at liquor consumption using macro panel data on American states over time (see Baltagi and Gri¢ n (2002)). The third application uses micro panel data on Russian alcohol consumption (see Baltagi and Geishecker (2006)). |