Campus Units

Economics

Document Type

Article

Publication Version

Published Version

Publication Date

2004

Journal or Book Title

Southwestern Economic Review

Volume

31

Issue

1

First Page or Article ID Number

41

Last Page

56

Abstract

The joint selection and purchase of alcohol and tobacco in Spain is modeled using bivariate probit and endogenous switching regression analysis to account for the interaction between drinking and smoking. Different expenditure structures for tobacco and alcohol arise when one or both are consumed. Endogenous switching among structures exists because households are not randomly assigned. The results show that the correlation term of the selection equations and most correction terms for selfselectivity bias are statistically significant. The results also show that income and household demographic variables are important determinants of both selection and expenditures on tobacco and alcohol.

Comments

This article is from Southwestern Economic Review 31 (2004): 41. Posted with permission.

Copyright Owner

Southwestern Society of Economists

Language

en

File Format

application/pdf

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