Are Korean Smokers Rational Addicts\ulcorner: An Analysis of Cigarette Consumption by the Rational Addiction Model

한국의 흡연자는 합리적 중독자인가 \ulcorner : 합리적 중독 모형(Rational Addiction Model)에 의한 담배소비 분석

In this study. we present a modified rational addiction model which incorporates social-psychological factors. This is done through a utility function which includes social-psychological factors as its component. We apply this model to a cigarette consumption function in Korea using the data from the Korean Household Panel Study(KHPS). The results provide relatively strong support for the rational addiction model. However. the impact of social-psychological factors and the short-run and long-run price elasticities are statistically insignificant.