Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/170937
Authors: 
Kaiser, Micha
Reutter, Mirjam
Sousa-Poza, Alfonso
Strohmaier, Kristina
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers No. 10953
Abstract: 
In this paper, we use data from the German Socio-Economic Panel to investigate the effect on cigarette consumption of macro-economic conditions in the form of regional unemployment rates. The results from our panel data models, several of which control for selection bias, indicate that the propensity to become a smoker increases significantly during an economic downturn, with an approximately 0.7 percentage point increase for each one percentage point rise in the unemployment rate. Conversely, conditional on the individual being a smoker, cigarette consumption decreases during recessions, with a one percentage point increase in the regional unemployment rate leading to an up to 0.8 percent decrease in consumption.
Subjects: 
business cycle
smoking
unemployment
JEL: 
E32
I12
J22
Document Type: 
Working Paper

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