Individual Heterogeneity and Censoring in Panel Data Estimates of Tobacco Expenditure

A.M. Jones; J.M. Labeaga

doi:10.1002/jae.673

Individual Heterogeneity and Censoring in Panel Data Estimates of Tobacco Expenditure

A.M. Jones, J.M. Labeaga

Economics

Research output: Contribution to journal › Article › peer-review

Abstract

A panel of households is used to test the rational addiction model of Becker et al. ([1994]). These data raise problems of measurement errors, censoring, and unobservable heterogeneity. We use sample separation information to exclude those households who never purchase tobacco. To deal with the remaining zeros we compare specifications based on infrequency of purchase and on censoring. GMM and system-GMM are used to deal with errors-in-variables and unobservable heterogeneity. Within-groups two-step, within-groups three-step GMM and Minimum Distance methods are used to allow for censoring. There is evidence that the rational addiction specification is sensitive to unobservable heterogeneity and censoring.

Original language	English
Pages (from-to)	157-177
Number of pages	20
Journal	Journal of Applied Econometrics
Volume	18
Issue number	2
DOIs	https://doi.org/10.1002/jae.673
Publication status	Published - 8 Oct 2002

Access to Document

10.1002/jae.673

http://dx.doi.org/10.1002/jae.673

Cite this

@article{14136894a5394398815c0fcaad81deca,

title = "Individual Heterogeneity and Censoring in Panel Data Estimates of Tobacco Expenditure",

abstract = "A panel of households is used to test the rational addiction model of Becker et al. ([1994]). These data raise problems of measurement errors, censoring, and unobservable heterogeneity. We use sample separation information to exclude those households who never purchase tobacco. To deal with the remaining zeros we compare specifications based on infrequency of purchase and on censoring. GMM and system-GMM are used to deal with errors-in-variables and unobservable heterogeneity. Within-groups two-step, within-groups three-step GMM and Minimum Distance methods are used to allow for censoring. There is evidence that the rational addiction specification is sensitive to unobservable heterogeneity and censoring.",

author = "A.M. Jones and J.M. Labeaga",

year = "2002",

month = oct,

day = "8",

doi = "10.1002/jae.673",

language = "English",

volume = "18",

pages = "157--177",

journal = "Journal of Applied Econometrics",

issn = "0883-7252",

publisher = "Wiley-Blackwell",

number = "2",

}

TY - JOUR

T1 - Individual Heterogeneity and Censoring in Panel Data Estimates of Tobacco Expenditure

AU - Jones, A.M.

AU - Labeaga, J.M.

PY - 2002/10/8

Y1 - 2002/10/8

N2 - A panel of households is used to test the rational addiction model of Becker et al. ([1994]). These data raise problems of measurement errors, censoring, and unobservable heterogeneity. We use sample separation information to exclude those households who never purchase tobacco. To deal with the remaining zeros we compare specifications based on infrequency of purchase and on censoring. GMM and system-GMM are used to deal with errors-in-variables and unobservable heterogeneity. Within-groups two-step, within-groups three-step GMM and Minimum Distance methods are used to allow for censoring. There is evidence that the rational addiction specification is sensitive to unobservable heterogeneity and censoring.

AB - A panel of households is used to test the rational addiction model of Becker et al. ([1994]). These data raise problems of measurement errors, censoring, and unobservable heterogeneity. We use sample separation information to exclude those households who never purchase tobacco. To deal with the remaining zeros we compare specifications based on infrequency of purchase and on censoring. GMM and system-GMM are used to deal with errors-in-variables and unobservable heterogeneity. Within-groups two-step, within-groups three-step GMM and Minimum Distance methods are used to allow for censoring. There is evidence that the rational addiction specification is sensitive to unobservable heterogeneity and censoring.

U2 - 10.1002/jae.673

DO - 10.1002/jae.673

M3 - Article

SN - 0883-7252

VL - 18

SP - 157

EP - 177

JO - Journal of Applied Econometrics

JF - Journal of Applied Econometrics

IS - 2

ER -