Health-related factors on tobacco consumption in Turkey

ABSTRACT: In this study, we analyzed the role of individuals’ health-related factors along with socio-demographic and economic characteristics on both the likelihood of tobacco consumption and quantity demanded levels using two competitive econometric methods: double hurdle model versus hyperbolic sine double-hurdle model. Statistical tests confirmed the dependency errors between the prevalence rate of smoking and the consumption level, whilst the inverse-hyperbolic sine double-hurdle model data fits best in describing the normalization of the data and the two data generating processes: the probability and consumption levels of cigarettes. Also, the variance-covariance of the selected model as a function of additional exogenous variables are confirmed, while the error terms between the likelihood to smoke and the consumption levels are positive and statistically significant, indicating that holding control variables fixed, the uncontrolled variables out of the system that increase the prevalence rate of smoking also boost the consumption level, or vice versa. Many individual disease variables are significant in both equations, breaking new grounds in literature for identifying how both the prevalence rate of smoking and amount have shaped.