%0 Report
        %A Kaiser, Micha
%A Reutter, Mirjam
%A Sousa-Poza, Alfonso
%A Strohmaier, Kristina
        %T Smoking and the Business Cycle: Evidence from Germany
        %D 2017
        %8 2017 Aug
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 10953
        %U https://www.iza.org/publications/dp10953
        %X In this paper, we use data from the German Socio-Economic Panel to investigate the effect on cigarette consumption of macro-economic conditions in the form of regional unemployment rates. The results from our panel data models, several of which control for selection bias, indicate that the propensity to become a smoker increases significantly during an economic downturn, with an approximately 0.7 percentage point increase for each one percentage point rise in the unemployment rate. Conversely, conditional on the individual being a smoker, cigarette consumption decreases during recessions, with a one percentage point increase in the regional unemployment rate leading to an up to 0.8 percent decrease in consumption.
        %K unemployment
%K smoking
%K business cycle