From questionnaire data it is evident that the number of alternatives unemployed workers consider, i.e. their choice set size, varies substantially. A binomial model is formulated for choice set size, where individual characteristics are used as explanatory variables for observed large variation...

When modelling demand for addictive consumption goods, the most widely used framework is the rational addiction model proposed by Becker and Murphy. This paper extends the rational addiction model to include two addictive consumption goods, alcohol and cigarettes, and using aggregate annual time...