The Trade-off Between Household Expenditures and Smoking Expenditure: Pre and Post Smoking Awareness Ordinance in Pakistan

Abstract

AbstractThe Government of Pakistan introduced smoking ordinance about health warning in 2009. This ordinance exhibits, prohibit smoking in public places, put restrictions on advertisements, and prohibits sale of cigarettes to minors. This study is to find out the impact of smoking expenditures on food, health, educational, recreational, and electronic expenditures using HIES dataset for 2010–11 and 2015–16. The findings show that share of food and health expenditure increase by 91 and 92% respectively. On the other hand, education and recreation expenditure decrease by 6 and 98% respectively. This is further verified using SUEST test to compare two datasets regressions. The result reveals that food, health, and recreational coefficient are statistically different while education and electronics expenditure remain similar.