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

Year 2015, Volume: 2 Issue: 4, 77 - 87, 30.10.2015

Metin Pişkin

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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