This article analyzes the determinants of tobacco expenditures for a sample of Italian households. A Box-Cox double-hurdle model adjusted for heteroscedasticity is estimated to account for separate individual decisions concerning smoking participation and tobacco consumption and to correct for...

The standard method used to test the rational expectations hypothesis (REH) in primary commodity markets is by means of a structural approach. In this paper, a parsimonious vector error correction model in the price and stock equation is derived that maintains almost complete information of the...