THE ECONOMIC EFFECTS OF GROWING ANTISMOKING ATTITUDES IN TURKEY: AT THE FRAMEWORK OF GENERAL EQUILIBRIUM ANALYSIS

Abstract

This study aims to investigate the effects of changing smoking attitudes as income grows on the output level of the tobacco industry and on the share of tobacco goods in household budget in Turkey for the period of 2004-2014 using GTAP general equilibrium model. Our analysis indicates that the share of tobacco product in household budget decreases 21% with economic growth between 2004-2014 and also this rate in household budget declines almost 50% with anti-smoking attitudes. And also this study indicates that if consumer demand for tobacco goods hadn’t been changed, industrial output could have increased nearly 98%.  

Keywords

• Income Elasticity of Demand,Computable General Equilibrium

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