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This study focuses on the determinants of cigarette consumption. In particular, the impact of cigarette pack sizes on the typical daily consumption of smokers is investigated. Results are presented from a new multi-modal count data model which allows for ‘pack-effects’ in daily consumption levels. Our results suggest that smokers regulate their consumption in accordance with the variety of pack sizes that are available to them.
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Farrell et al. (2010) studied this question.
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