The demand for tobacco in post-unification Italy

This paper studies the demand for tobacco products in post-unification Italy. We construct a very detailed panel data set of yearly consumption in the 69 Italian provinces from 1871 to 1913 and use it to estimate the demand for tobacco products. We find support for the Becker and Murphy (J Polit Eco...

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Main Authors: Ciccarelli, Carlo, De Fraja, Gianni
Format: Article
Published: Springer 2014
Subjects:
Online Access:https://eprints.nottingham.ac.uk/30249/
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author Ciccarelli, Carlo
De Fraja, Gianni
author_facet Ciccarelli, Carlo
De Fraja, Gianni
author_sort Ciccarelli, Carlo
building Nottingham Research Data Repository
collection Online Access
description This paper studies the demand for tobacco products in post-unification Italy. We construct a very detailed panel data set of yearly consumption in the 69 Italian provinces from 1871 to 1913 and use it to estimate the demand for tobacco products. We find support for the Becker and Murphy (J Polit Econ 96:675–700, 1988) rational addiction model. We also find that, in the period considered, tobacco was a normal good in Italy: aggregate tobacco consumption increased with income. Subsequently, we consider separately the four types of products which aggregate tobacco comprises (fine-cut tobacco, snuff, cigars, and cigarettes), and tentatively suggest that habit formation was a stronger factor on the persistence of consumption than physical addiction. The paper ends by showing that the introduction of the Bonsack machine in the early 1890s did not coincide with changes in the structure of the demand for tobacco, suggesting cost-driven technological change.
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spelling nottingham-302492020-05-04T16:45:44Z https://eprints.nottingham.ac.uk/30249/ The demand for tobacco in post-unification Italy Ciccarelli, Carlo De Fraja, Gianni This paper studies the demand for tobacco products in post-unification Italy. We construct a very detailed panel data set of yearly consumption in the 69 Italian provinces from 1871 to 1913 and use it to estimate the demand for tobacco products. We find support for the Becker and Murphy (J Polit Econ 96:675–700, 1988) rational addiction model. We also find that, in the period considered, tobacco was a normal good in Italy: aggregate tobacco consumption increased with income. Subsequently, we consider separately the four types of products which aggregate tobacco comprises (fine-cut tobacco, snuff, cigars, and cigarettes), and tentatively suggest that habit formation was a stronger factor on the persistence of consumption than physical addiction. The paper ends by showing that the introduction of the Bonsack machine in the early 1890s did not coincide with changes in the structure of the demand for tobacco, suggesting cost-driven technological change. Springer 2014-05-01 Article PeerReviewed Ciccarelli, Carlo and De Fraja, Gianni (2014) The demand for tobacco in post-unification Italy. Cliometrica, 8 (2). pp. 145-171. ISSN 1863-2505 Smoking Italian Kingdom Rational addiction Panel data http://link.springer.com/article/10.1007%2Fs11698-013-0097-z doi:10.1007/s11698-013-0097-z doi:10.1007/s11698-013-0097-z
spellingShingle Smoking
Italian Kingdom
Rational addiction
Panel data
Ciccarelli, Carlo
De Fraja, Gianni
The demand for tobacco in post-unification Italy
title The demand for tobacco in post-unification Italy
title_full The demand for tobacco in post-unification Italy
title_fullStr The demand for tobacco in post-unification Italy
title_full_unstemmed The demand for tobacco in post-unification Italy
title_short The demand for tobacco in post-unification Italy
title_sort demand for tobacco in post-unification italy
topic Smoking
Italian Kingdom
Rational addiction
Panel data
url https://eprints.nottingham.ac.uk/30249/
https://eprints.nottingham.ac.uk/30249/
https://eprints.nottingham.ac.uk/30249/