We use a framework suggested by a model of rational addiction to analyze empirically the demand for cigarettes. The … results provide support for the implications of a rational addiction model that cross price effects are negative (consumption …

of rational addiction are crucial for the design of public policy. In particular, accounting for peer externalities … addiction. In contrast to prior research, we allow individuals to make their consumption decisions simultaneous with savings and … labor supply. When addictive goods have a stronger habit formation effect (an addiction effect'), individuals choose to save …

A standard model of addictive process is Becker and Murphy's rational addiction' model, which has the key empirical … the optimal government regulation of addictive goods should depend only on their interpersonal externalities. While a … the inconsistent preferences which are likely to provide a much better platform for understanding the smoking decision. We …

. Demand theory suggests that mental illness would affect consumption if mental illness affected marginal utility. In addition …

After a discussion of cigarette smoking in the context of the Becker-Murphy (1988) model of rational addictive behavior … consumption. These are contrasted to equations developed under the competing hypotheses that smoking is not addictive or that … of the Second National Health and Nutrition Examination Survey. Estimates support the assumptions that cigarette smoking …

characterizing addictive consumption. Results obtained from these demand equations support the hypothesis that cigarette smoking is …

We develop and estimate a life-cycle model in a rational addiction framework where youth choose to smoke, attend school … reciprocal causal effects of addiction and education. Variations in endowments and cigarette prices are sources of identification …. We show that education causally reduces smoking. A counterfactual experiment finds that in absence of cigarettes, college …

A large literature examines the addictive properties of such behaviors as smoking, drinking alcohol and eating. We …, in that they are more likely to postpone earlier plans for retirement. The evidence and theory suggest that the negative …

restrictions implied by asset pricing theory. We treat the functional form of the habit as unknown, and to estimate it along with …