Examination of the influence of impact on tobacco consumption in Serbia

Abstract

The subject of this paper is the econometric analysis of tobacco demand in Serbia. The aim of this paper is to quantify the impact of income and socioeconomic and demographic characteristics of households on tobacco expenditure based on microdata from the 2019 Household Budget Survey conducted by the Statistical Office of the Republic of Serbia according to the same methodology applied by the European Union Agency for Statistics. The influence of these factors was quantified on the basis of seven different functional forms of Engel curves, which are most often used in econometric empirical research. Based on the estimated parameters of the empirical specifications of Engel curves and the elasticity derived from them, the hypothesis of inelasticity of demand for tobacco products in relation to household income was tested.

Keywords

• income elasticity
• tobacco expenditure
• engel curves
• significance
• hypothesis