Analysis of determinants of cigarette consumption in OECD countries

This bachelor thesis analyzes the impact of selected determinants on smoking behavior. Analysis of aggregate cigarette demand is based on data from 35 OECD countries and the analysis of rate of daily smokers is based on data from 28 OECD countries from year 2014. Based on this dataset, I estimated 2 basic and 2 extended econometric models, in which I used the following explanatory variables: price of cigarettes, public smoking bans, health warning labels, bans on tobacco advertising, education level, unemployment rate and GDP per capita. I stated two hypotheses: 1. price elasticity of demand for cigarettes will fall in the narrower range from -1 to 0, 2. at least one of three anti-tobacco regulations has significant and negative effect on smoking behavior. Hypothesis no. 1 has been confirmed in both models, however the hypothesis no. 2. has been not confirmed. Beside of cigarette price, two exogenous variables in the constructed models showed their significance. In the model with number of cigarettes as endogenous variable, GDP per capita had significant and positive effect on explained variable. In the model with rate of daily smokers as endogenous variable, tertiary women education rate had significant and negative effect on explained variable