An empirical investigation of heterogeneity in time preferences and smoking behaviors

In this study I exploit the findings of a population survey in which I had the opportunity to introduce questions on time preferences. The study uses retrospective data to estimate the relationship between present-biased preferences and the decisions to start and quit smoking. Respondents stating present-biased preferences are not more prone to start smoking but quit later in life, and after more failed attempts. These preliminary results strongly suggest that smokers form a heterogeneous population and it can be argued that such heterogeneity means that taxes on cigarettes are a blunt and inefficient instrument of public health.