Smoking or not smoking? A logit model analysis

Since the beginning of President Clinton's administration, the cigarette industry has been under a lot of pressure to change the way they do business, how they advertise. This study was not intended to be for or against the issue of smoking but to see which variable affects smoking after the consumer makes the adult decision to smoke. Three different econometric analyses were used to come up with these results; Logit, OLS and Linear Probability Model. The findings indicate that variables like income, pack per week smoked, age, years smoking and gender are significant in determining if an adult consumer continues to smoke. In addition, age, race, and years smoking are good indicators of whether a smoker is or is not price conscious. Years smoking, age, and education of a smoker's mother also have an effect on how much cigarettes an adult smoker consumes.