The seminal paper by Becker and Murphy (1988) proposed a model acknowledging both addiction and rationality in the consumption of addictive goods. We extend this rational addiction model to include two addictive consumption goods, where the goods may be substitutes or complements, and may...

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...

For modeling complete female fertility we propose a zero-and-two-inflated count data model, which accounts for a relative excess of both zero and two children. As the underlying distribution of counts we use the standard Poisson distribution and the more general Gamma count distribution. We...

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...

In a large sample of Swedish unemployed disabled workers, the workers participate in between zero and ten policy programmes during their unemployment spell. Clustering of programmes to about half of the sample is prominent. <p> The number of programmes is modelled as a standard count data model, as...</p>

Return to employment, after a period of unemployment, is analyzed for a large sample of Swedish occupationally disabled workers. A piece-wise constant model is used, extended to allow for Gamma heterogeneity. Three competing exits from unemployment are accounted for; regular employment,...

We propose an extension of the often used rational addiction model. Our model includes both legal and illegal cigarettes. The model is tested on a Swedish data set covering the aggregate legal and illegal cigarette markets. When we treat legal and illegal cigarettes as independent demand...

It is well-known that cigarette smoking and the use of other addictive goods is harmful to health. Still, some people smoke cigarettes and drink alcohol in their daily life. The consumption of addictive goods seems, therefore, to be the anti-thesis of rational behavior. In this paper, however,...

When modeling demand for addictive consumption goods, the most widely used framework is the rational addiction model proposed by Becker and Murphy (1988). In the present paper, we extend the rational addiction model to include two addictive consumption goods, alcohol and cigarettes. We estimate...