Health Economics Letter
THE ROLE OF TIME PREFERENCES IN THE INTERGENERATIONAL TRANSFER OF SMOKING
Article first published online: 19 AUG 2013
© 2013 The Authors. Health Economics published by John Wiley & Sons Ltd.
This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Volume 23, Issue 12, pages 1493–1501, December 2014
How to Cite
2014), THE ROLE OF TIME PREFERENCES IN THE INTERGENERATIONAL TRANSFER OF SMOKING, Health Econ., 23, 1493–1501, doi:10.1002/hec.2987., and (
- Issue published online: 5 NOV 2014
- Article first published online: 19 AUG 2013
- Manuscript Accepted: 16 JUL 2013
- Manuscript Revised: 15 JUL 2013
- Manuscript Received: 8 AUG 2012
- Chief Scientist Office of the Scottish Government Health Directorates
- Medical Research Council Economic and Social Research Council/National Institute of Health Research. Grant Number: G0802291
- Australian Government Department of Families, Housing, Community Services and Indigenous Affairs
- intergenerational transfer;
- time preference;
- decomposition analysis
Evidence suggests that maternal and offspring smoking behaviour is correlated. Little is known about the mechanisms through which this intergenerational transfer occurs. This paper explores the role of time preferences. Although time preference is likely to be heritable and correlated with health investments, its role in the intergenerational transmission of smoking has not been explored previously. This is the first paper to empirically test this. Data (2002, 2003, 2004, 2006 and 2008) from the Household, Income and Labour Dynamics in Australia are used. Estimates by using a pooled probit model show that there is not a direct effect of maternal time preference, measured in terms of financial planning horizon, on the likelihood that their offspring is a smoker. However, there is an indirect effect of maternal time preference. Sons of mothers that are smokers and have a shorter planning horizon are 6% more likely to smoke than if their mother had a longer planning horizon, and daughters of mothers that smoke with a shorter planning horizon are 7% more likely to smoke themselves than if their mother had a longer planning horizon. © 2013 The Authors. Health Economics published by John Wiley & Sons Ltd.