Household's Tobacco Consumption Decisions

Abstract

This article analyses consumption patterns, socio-economic distribution and household choice of a variety of tobacco products across rural and urban India. Using a multinomial logit model, we examine the choice behaviour of a household in deciding whether and which tobacco products to consume. Household-level data covering 120,309 households have been used for this. We find that most forms of tobacco consumption are higher among socially disadvantaged and low-income groups in the country. Variables such as education, sex ratio, alcohol and pan consumption were found to be significant factors determining tobacco consumption habits of Indian households. The effect of some of the factors on the probability of consumption differs for certain types of tobacco products, increasing some and decreasing others. Addictive goods such as alcohol and pan were found to be complementary to tobacco consumption.