An empirical analysis of e-cigarette addiction

Xueting Deng, Yuqing Zheng, J. S. Butler

Research output: Contribution to journalArticlepeer-review

1 Scopus citations


This paper examines the role of addiction in influencing the demand for e-cigarettes using the Nielsen Retail Scanner Data and the Nielsen Consumer Panel Data between 2012 and 2017. With a comparison of a myopic addiction model, a forward-looking model, and a rational addiction model, this paper tests whether the consumption of e-cigarettes is addictive and rational. Results from both the macro data and the microdata support the rational addictiveness of e-cigarettes. Applying an OLS method and an instrumental variable method in causal inference, results show that the long-run price elasticity estimates are larger than the estimates of the short-run price elasticity of demand for e-cigarettes. Estimates of both long-run and short-run elasticities are greater than one, −1.50 and −1.05, suggesting e-cigarette demand is elastic in both the long run and short run.

Original languageEnglish
Article number2223953
JournalJournal of Applied Economics
Issue number1
StatePublished - 2023

Bibliographical note

Publisher Copyright:
© 2023 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.


  • addiction
  • causal inference
  • e-cigarettes
  • price elasticity of demand

ASJC Scopus subject areas

  • General Economics, Econometrics and Finance


Dive into the research topics of 'An empirical analysis of e-cigarette addiction'. Together they form a unique fingerprint.

Cite this