To test a model of rational addiction, the authors examine whether lower past and future prices for cigarettes raise current cigarette consumption. The empirical results tend to support the implication of addictive behavior that cross-price effects are negative and that long-run responses exceed...

Preferences and attitudes to illicit drug policy held by individuals are likely to be an important influence in the development of illicit drug policy. Amongst the key factors impacting on an individual’s preferences over substance use policy are their beliefs about the costs and benefits of...

"This volume consists of eight chapters, selected from papers presented at the Symposium on Human Capital and Health Behavior, organized by the Centre for Health Economics, University of Gothenburg, Sweden, May 19-20, 2016"--page xi

Human capital is embodied in human beings. It embraces the individual's capacity to perform and enjoy activities that provide money and/or psychic income. Health behaviour affects human capital and is itself affected by the individual's human capital. This volume consists of original theoretical...

In this chapter, we investigate two-way causality between health and the hourly wage. We employ insights from the human capital and compensating wage differential models, a panel formed from the National Longitudinal Survey of Youth 1997, and dynamic panel estimation methods in this...