Tobacco consumption influence on spending patterns within Costa Rican households

Tobacco consumption implies a dilemma in the allocation of the family budget. Hence, the objective of this study is to determine the effect of tobacco consumption on expenditure patterns within Costa Rican households. The 2018 National Household Income and Expenditure Survey is used to estimate Eng...

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Main Author: Erick Enrique Sequeira Benavides
Format: Article
Language:Spanish
Published: Centro Centroamericano de Población 2024-01-01
Series:Población y Salud en Mesoamérica
Subjects:
Online Access:https://revistas.ucr.ac.cr/index.php/psm/article/view/54567
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author Erick Enrique Sequeira Benavides
author_facet Erick Enrique Sequeira Benavides
author_sort Erick Enrique Sequeira Benavides
collection DOAJ
description Tobacco consumption implies a dilemma in the allocation of the family budget. Hence, the objective of this study is to determine the effect of tobacco consumption on expenditure patterns within Costa Rican households. The 2018 National Household Income and Expenditure Survey is used to estimate Engel curves through a Quadratic Almost Ideal Demand System, using the Seemingly Unrelated Regression model for a set of 11 expenditure categories. Due to heteroskedasticity and endogeneity, the Generalized Method of Moment Three-Stage-Least-Squares (GMM-3SLS) is used since it provides more efficient parameter estimates. Results show that tobacco consumption is associated with a crowding-out effect on health expenditure and with a crowding-in effect on restaurant and hotel expenditures. Furthermore, tobacco consumption shows a crowding-in effect on alcoholic beverages for every income quintile. This suggests that tobacco consumption could harm the country´s standard of living and not only the realm of health.
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spelling doaj.art-620c6deb752b4fe38b8b630b076b43bb2024-02-21T21:11:29ZspaCentro Centroamericano de PoblaciónPoblación y Salud en Mesoamérica1659-02012024-01-0121210.15517/psm.v21i2.54567Tobacco consumption influence on spending patterns within Costa Rican householdsErick Enrique Sequeira Benavides0Universidad de Costa Rica, COSTA RICA Tobacco consumption implies a dilemma in the allocation of the family budget. Hence, the objective of this study is to determine the effect of tobacco consumption on expenditure patterns within Costa Rican households. The 2018 National Household Income and Expenditure Survey is used to estimate Engel curves through a Quadratic Almost Ideal Demand System, using the Seemingly Unrelated Regression model for a set of 11 expenditure categories. Due to heteroskedasticity and endogeneity, the Generalized Method of Moment Three-Stage-Least-Squares (GMM-3SLS) is used since it provides more efficient parameter estimates. Results show that tobacco consumption is associated with a crowding-out effect on health expenditure and with a crowding-in effect on restaurant and hotel expenditures. Furthermore, tobacco consumption shows a crowding-in effect on alcoholic beverages for every income quintile. This suggests that tobacco consumption could harm the country´s standard of living and not only the realm of health. https://revistas.ucr.ac.cr/index.php/psm/article/view/54567tobacco consumptionalcohol expenditurecrowding outexpenditure shares
spellingShingle Erick Enrique Sequeira Benavides
Tobacco consumption influence on spending patterns within Costa Rican households
Población y Salud en Mesoamérica
tobacco consumption
alcohol expenditure
crowding out
expenditure shares
title Tobacco consumption influence on spending patterns within Costa Rican households
title_full Tobacco consumption influence on spending patterns within Costa Rican households
title_fullStr Tobacco consumption influence on spending patterns within Costa Rican households
title_full_unstemmed Tobacco consumption influence on spending patterns within Costa Rican households
title_short Tobacco consumption influence on spending patterns within Costa Rican households
title_sort tobacco consumption influence on spending patterns within costa rican households
topic tobacco consumption
alcohol expenditure
crowding out
expenditure shares
url https://revistas.ucr.ac.cr/index.php/psm/article/view/54567
work_keys_str_mv AT erickenriquesequeirabenavides tobaccoconsumptioninfluenceonspendingpatternswithincostaricanhouseholds