ATTENTION: The software behind KU ScholarWorks is being upgraded to a new version. Starting July 15th, users will not be able to log in to the system, add items, nor make any changes until the new version is in place at the end of July. Searching for articles and opening files will continue to work while the system is being updated.
If you have any questions, please contact Marianne Reed at mreed@ku.edu .
Consumer Demand under Price Uncertainty: Empirical Evidence from the Market for Cigarettes
dc.contributor.author | Coppejans, Mark | |
dc.contributor.author | Gilleskie, Donna | |
dc.contributor.author | Sieg, Holger | |
dc.contributor.author | Strumpf, Koleman | |
dc.date.accessioned | 2012-09-14T20:16:53Z | |
dc.date.available | 2012-09-14T20:16:53Z | |
dc.date.issued | 2007-08 | |
dc.identifier.citation | Coppejans, Mark, Donna Gilleskie, Holger Sieg, and Koleman Strumpf (2007), "Consumer Demand under Price Uncertainty: Empirical Evidence from the Market for Cigarettes," Review of Economics and Statistics, 89 (3), 510-521. | |
dc.identifier.issn | 0034-6535 | |
dc.identifier.uri | http://hdl.handle.net/1808/10091 | |
dc.description | © 2007 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology | |
dc.description.abstract | We develop a demand model for goods that are subject to habit formation. We show that consumption plans of forward-looking individuals depend on preferences, current period prices, and individual beliefs about the evolution of future prices. Moreover, an increase in price uncertainty reduces consumption along the optimal path.With smoking as our application, we test the predictions of our model using a unique data set of prices for cigarettes and the restricted-use version of the National Education Longitudinal Study. Our estimation results suggest that teenagers who live in metropolitan areas with a large amount of cigarette price volatility have, on average, significantly lower levels of cigarette consumption. | |
dc.language.iso | en_US | |
dc.publisher | MIT Press | |
dc.title | Consumer Demand under Price Uncertainty: Empirical Evidence from the Market for Cigarettes | |
dc.type | Article | |
kusw.kuauthor | Strumpf, Koleman | |
kusw.kudepartment | School of Business | |
kusw.oastatus | fullparticipation | |
dc.identifier.doi | 10.1162/rest.89.3.510 | |
kusw.oaversion | Scholarly/refereed, publisher version | |
kusw.oapolicy | This item meets KU Open Access policy criteria. | |
dc.rights.accessrights | openAccess |