Relationship of Addictive Goods Consumption. Estimation Using U.S. Data

Student: Romanenko Aleksandra

Educational Programme: Economics (Bachelor)

Year of Graduation: 2022

This paper assesses the relationship of addictive goods consumption using alcohol, cigarettes, and marijuana as examples. The study is based on data from the U.S. National Survey on Drug Use and Health from 2006 to 2020. Multivariate probit models are estimated to analyze the relationship. Strong positive relationship in the consumption of these addictive goods was found. In addition, a semiparametric estimation method of multivariate selection bias correction was used to analyze the effect of addictions on the frequency of consumption of addictive goods. The results showed that the effects of alcohol, cigarette, and marijuana use on the other addictions were uneven and varied over time. The effect of anti-tobacco policies on the prevalence of addictions and individuals' preferences was also revealed.

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