Structural Change in Cigarette Demand: Cusum Tests Using Panel Data

Schroeter, John R.; Fenn, Aju J.

Economics Bulletin Vol. 9 (September 2005): 1-11.

We conduct cusum tests of structural change in a rational addiction model of cigarette demand estimated using a panel of annual time series of state-level data. In contrast to the one previous application of cusum tests to the question of cigarette demand stability, our results provide strong evidence of downward shifts in demand during the modern era of health warnings and anti-smoking campaigns.

Published Version