The rational addiction model is usually tested by estimating a linear second-order difference Euler equation, which may … rational addiction model. It is also empirically convenient because it is simple, it allows using efficient estimation … application we estimate the demand for smoking in the US from 1970 to 2016, and we show that it is consistent with the rational …

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 … estimates illustrate the importance of the intertemporal linkages in cigarette demand implied by rational addictive behavior …

recoveries or offering rewards for private solutions to social problems that would otherwise encourage a growing addiction to law …

We include insurance for addiction treatment in the standard rational addiction model and show that an increase in the … level of insurance for addiction treatment induces a forward-looking individual to consume more of a harmfully addictive …