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Addictivity and Interdependence of Alcohol Beverages and Cigarette Consumption in Russia

Student: Bognat Mariia

Supervisor:

Faculty: Faculty of Economic Sciences

Educational Programme: Joint HSE-NES Undergraduate Program in Economics (Bachelor)

Final Grade: 8

Year of Graduation: 2019

Cigarettes and alcohol beverages consumption are one of the main health concerns in most countries worldwide. These problems are associated with a number of negative externalities on socio-economic life of the country. In order to implement an effective public policy to control the consumption of these two goods it is necessary to understand the consumer behavior in the markets. Based on the rational addiction model this work studies the addictive behavior of alcohol beverages (vodka and beer) and cigarettes consumers and interdependence of these two goods in Russia. The analysis is based on RLMS HSE individual panel data. According to the results we confirm rational addiction to cigarettes. We find a positive relationship between consumption of cigarettes and beer and negative relationship between vodka and cigarettes consumption.

Full text (added May 24, 2019)

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