This paper adopts a systems approach to estimate budget share equations for four categories of alcoholic drink and for tobacco using quarterly expenditure data for the period 1964 to 1983. The emphasis is on the importance of the tolerance effects of addiction and on the smoker's participation...

This note shows how the likelihood of the full double-hurdle model with dependence can be reformulated to allow estimation with standard econometric software. An illustrative example is provided, using data on tobacco expenditure by households in the 1984 U.K. Family Expenditure Survey....