Cigarette smoking in Indonesia: examination of a myopic model of addictive behaviour

Int J Environ Res Public Health. 2010 Jun;7(6):2473-85. doi: 10.3390/ijerph7062473. Epub 2010 Jun 4.


Using aggregated panel data taken from three waves of the Indonesian Family Life Survey (1993-2000), this article tests the myopic addiction behaviour of cigarette demand. Sensitivity analysis is done by examining a rational addiction behavior of cigarette demand. The results provide support for myopic addiction. The short- and long-run price elasticities of cigarette demand are estimated at -0.28 and -0.73 respectively. Excise taxes are more likely to act as an effective tobacco control in the long-run rather than a major source of government revenue.

Keywords: Indonesia; cigarette consumption; methodology for panel data; myopic addictive models.

Publication types

  • Research Support, N.I.H., Extramural

MeSH terms

  • Behavior, Addictive / economics
  • Behavior, Addictive / epidemiology*
  • Behavior, Addictive / psychology
  • Health Surveys
  • Humans
  • Indonesia / epidemiology
  • Models, Psychological
  • Models, Statistical
  • Regression Analysis
  • Smoking / adverse effects
  • Smoking / economics
  • Smoking / epidemiology*
  • Smoking / psychology
  • Statistics as Topic