Title Page
ABSTRACT
Contents
I. Introduction 11
1.1. Background of study 11
1.2. Purpose of study 13
II. Theoretical background 16
2.1. Tobacco price 16
2.2. Treatment Effect and Matching 18
2.2.1. Treatment Effect 18
2.2.2. Matching 20
III. Smoking and Households Expenditure in South Korea 24
3.1. Smoking 24
3.2. Tobacco and Food 27
IV. Methodology 34
4.1. Empirical Research Design 34
4.2. Data and Variable 35
4.3. Empirical Analysis 39
4.3.1. Propensity Score Matching 39
4.3.2. Difference-In-Difference Matching 41
V. EMPIRICAL RESULT 43
5.1. Summary and Descriptive Statistics 43
5.1.1. Demographic Statistics 43
5.1.2. Expenditure Statistics 47
5.2. Treatment effect 50
5.2.1. Propensity Score Matching 50
5.2.2. Difference-In-Difference Matching 53
VI. CONCLUSION & DISCUSSION 57
6.1. Summary of Result 57
6.2. Implication 60
REFERENCES 62
Appendix 67
APPENDIX I. Additional Figures 67
APPENDIX II. Additional tables 73
국문초록 81
Table 1. Change in smoking rate in South Korea: Percentage of adults who have... 24
Table 2. Change in smoking rate in OECD countries: Percentage of current smokers... 25
Table 3. National taxes and retail in G20: National taxes and retail price for a pack of... 26
Table 4. Variable description 36
Table 5. South Korea minimum cost of living and Lower income level 38
Table 6. Demographic characteristics of smoking whole households 44
Table 7. Demographic characteristics of non-smoking whole households 45
Table 8. Consumption expenditure characteristics of smoking whole households 48
Table 9. Consumption expenditure characteristics of non-smoking whole households 49
Table 10. Test of balancing property of PS for whole households 51
Table 11. ATT by PSM results for smoking households 52
Table 12. DID matching result 55
Table 13. Change in smoking rate in South Korea: Percentage of adults who have... 73
Table 14. Demographic characteristics of smoking low-income households 74
Table 15. Demographic characteristics of non-smoking low-income households 75
Table 16. Consumption expenditure characteristics of smoking low-income... 76
Table 17. Consumption expenditure characteristics non-smoking low-income... 77
Table 18. Test of balancing property of PS for low-income households 77
Table 19. ATT by PSM result for non-smoking households 78
Table 20. Consumer Price Index in 2Q and 3Q of 2014 and 2015 79
Table 21. ATT by PSM results for smoking households (real price index) 79
Table 22. DID matching result (real price index) 80
Figure 1. Per capita tobacco consumption volume (g) in OECD Asian countries (≥15... 25
Figure 2. Whole households' Consumption spending trend in South Korea 30
Figure 3. low-income households' Consumption spending trend in South Korea 30
Figure 4. Whole households' sub-category spending trend in South Korea 31
Figure 5. low-income households' sub-category spending trend in South Korea 32
Figure 6. Whole households' fresh food spending trend in South Korea 33
Figure 7. low-income households' fresh food spending trend in South Korea 33
Figure 8. Empirical Research Design steps 35
Figure 9. Treatment effects on cigarettes and food items from PSM only (₩) 53
Figure 10. Net policy effects on cigarettes and food items by DID using PSM (₩) 56
Figure 11. Korean households' expenditure share of Carbohydrate Food in total Food 72
Figure 12. Relative poverty in South Korea from 1990 to 2015 72
Equation (1) (제목없음) 18
Equation (2) (제목없음) 19
Equation (3) (제목없음) 19
Equation (4) (제목없음) 19
Equation (5) (제목없음) 19
Equation (6) (제목없음) 20
Equation (7) (제목없음) 20
Equation (8) (제목없음) 21
Equation (9) (제목없음) 22
Equation (10) (제목없음) 39
Equation (11) (제목없음) 42