HOUSEHOLD ALCOHOL AND TOBACCO EXPENDITURES IN TURKEY: A SAMPLE-SELECTION SYSTEM APPROACH

Household characteristics variables are used to quantify alcohol and tobacco participation and spending level decisions for households in Turkey using a sample-selection system. Statistical tests support separate analyses for urban and rural households and joint estimation of the equation system to ameliorate biases and improve statistical efficiency of estimates. Household characteristics play important roles in determining binary consumption decisions and levels of spending on tobacco but play less definitive roles in alcohol spending, for both urban and rural households. Differences are found in consumption behaviors between the two types of households. (JELC24, D12, I18)