Influence of cigarette prices and social environment smoking on allocation of consumption allocation of consumption of food groups: analysis of Susenas 2014 Indonesia
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University of Indonesia, Economics and Business, Indonesia
Publication date: 2018-03-01
Tob. Induc. Dis. 2018;16(Suppl 1):A934
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ABSTRACT
Background:
The
study of cigarette consumption is still partial by looking at how environmental
influences are smoked against individual cigarette consumption / household, or
crowding out effect due to price increase. The price of cigarettes is a fairly
effective instrument in reducing tobacco consumption. The study question of how
the effect of cigarette price changes affects the allocation of expenditure of
food groups and household cigarettes by considering the social environment of
cigarette society.
The
purpose to find out how the influence of cigarette prices and the social
environment smokes its effect on the allocation of expenditure of 11 food
groups, including cigarettes to households.
Methods:
The
method using Almost Ideal Demand System model, data data used Susenas 2014.
Price is estimated from unit value by eliminating the effect of difference of
fan quantity premier quality. Heckman procedures to address households that do
not consume food / cigarette groups. The smoking social environment is
projected from the prevalence of smoking at the district level from Riskesdas
2013 data. Variable controls are social and demographic characteristics of
households, household expenditures, and the existence of district-level
prohibition regulations.
Results:
The estimation results show that by
incorporating the social environmental variables smoking, the price of
cigarettes has less effect as price changes than the estimate that does not
consider the social environment of smoking. The price of cigarettes will also
decrease the allocation of household expenditure for certain commodity groups
and decrease the allocation of household expenditure for some commodity groups.
Conclusions:
The conclusion of the study, the effect of cigarette prices on cigarette consumption and other commodity consumption becomes different when considering the social environment of community smoking. The policy of cigarette control not only with economic variables but also considering social factors of society.