Cigarette demand equations, derived from the Becker-Murphy
model of rational addictive behavior, are estimated separately for
men and women. These demand equations account for the reinforcement,
tolerance, and withdrawal factors characterizing addictive
consumption. Results obtained from these demand equations support
the hypothesis that cigarette smoking is an addictive behavior.
Particularly interesting are the findings that men are responsive
to changes in the price of cigarettes, with a long run price
elasticity centered on -0.60, while women are virtually unresponsive
to price changes. Men, however, are found to behave more
myopically than women.
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