The Dynamics of the Russian Lifestyle During Transition: Changes in Food, Alcohol and Cigarette Consumption

This paper presents evidence on the impact of individual as well as regional characteristics on changes in fat, protein, alcohol and cigarette consumption, and on diet’s diversity between 1994 and 2004. The results from a dynamic econometric model suggest that among individual determinants such as initial levels of consumption, gender, education, household income changes, and access to a garden plot all have a significant impact on the changes in consumption behavior in Russia. Regarding the macroeconomic variables, inflation has a significant impact on changes in alcohol and cigarettes consumption, while unemployment changes significantly impact smoking behavior. Russian consumers only respond to own price changes of fat and protein, but do not respond to own prices for alcohol and cigarettes. Analysis of subsamples conditional on initial consumption behavior reveals significant heterogeneity in consumption patterns, which is important for effective policy targeting different population groups in achieving healthier lifestyle choices in Russia.