TY  - RPRT
        AU  - Kaiser, Micha
AU  - Reutter, Mirjam
AU  - Sousa-Poza, Alfonso
AU  - Strohmaier, Kristina
        TI  - Smoking and the Business Cycle: Evidence from Germany
        PY  - 2017/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 10953
        UR  - https://www.iza.org/publications/dp10953
        AB  - 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.
        KW  - unemployment
KW  - smoking
KW  - business cycle
        ER  -