Should one use smokeless tobacco in smoking cessation programs?

A rational addiction approach
Original Papers

Abstract

The rational addiction model is often used for empirical analysis of the demand for addictive goods. We propose an extension of the model to include two goods, cigarettes and Swedish moist snuff, locally known as snus. Demand equations are estimated using aggregated annual time series data (in first differences) for the period 1964–1997. The findings from the dataset used give some support to the rational addiction hypothesis. The cross-price elasticities are negative, which indicates that taking snus contributes to increased smoking. Thus it is not advisable to encourage the use of the less harmful snus in smoking cessation programs.

Keywords

Rational addiction model Smoking cessation programs Smokeless tobacco Swedish moist snuff 

Notes

Acknowledgements

Valuable comments and suggestions from participants at seminars at Umeå University, Stockholm University (SOFI), and Luleå University of Technology are gratefully acknowledged. We are grateful to Sam Cameron for providing us with helpful comments and suggestions. Finally, we thank Suzanne Grahn at Swedish Match for providing the time series of snus prices. The usual disclaimer applies.

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Copyright information

© Springer-Verlag 2003

Authors and Affiliations

  1. 1.Department of EconomicsUmeå UniversitySweden
  2. 2.SOFIStockholm UniversitySweden
  3. 3.Department of EconomicsUmeå UniversityUmeåSweden

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