We model the future tobacco consumption, size of smoking population and governmental tax revenues in the Czech Republic. The main assumption of our model states that smokers determine their future tobacco consumption behavior as adolescents. Further assumptions make the model applicable to the...

This paper shows that the combination of habit formation - present consumption creating additional consumption needs in the future - and myopia may explain why some retirees are forced to "unretire", i.e., unexpectedly return to work. It also shows that when myopia about habit formation leads to...