Do smokers behave differently? A tale of zero expenditures and separability concepts

Abstract

A simple test is derived for a necessary condition for zero expenditures on tobacco to arise from corner solutions. This test coincides with a test for a new separability concept, which is closely related to demographic separability. Financial support of this research by the Fund for Scientific Research − Flanders (contract FWO G.0327.97) is gratefully acknowledged. I would like to thank Anton Barten and Bart Capéau for helpful comments on an earlier version of this paper. Any errors remaining are my own.