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As the tobacco expenditure variable is endogenous to budget shares on other consumption items, instrumental variables were included to obtain consistent estimates.<\/jats:p><\/jats:sec><jats:sec><jats:title>Results<\/jats:title><jats:p>Overall, the results confirm the existence of the crowding out effect of tobacco spending on various commodities, such as some food items (eg, cereals, fruits and vegetables and dairy products), clothing, housing and utilities, education and recreation while a positive effect of tobacco consumption was estimated on budget shares on bars and restaurants, alcohol, coffee and sugary drinks. These results are consistent throughout the income groups of households. The estimates indicate that an increase in tobacco expenditures leads to reduction in budget shares on essential goods, which is likely to have negative impacts on the household living standard.<\/jats:p><\/jats:sec><jats:sec><jats:title>Conclusions<\/jats:title><jats:p>Tobacco expenditure crowds out household spending on necessities, especially in case of the poorest households, thus increasing inequality, hampering human capital development and potentially causing long-term adverse effects on the households in Montenegro. Our results are similar to evidence from other low and middle-income countries. This paper contributes to the analysis of the crowding out effect of tobacco consumption, which was conducted for the first time in Montenegro.<\/jats:p><\/jats:sec>","DOI":"10.1136\/tc-2022-057786","type":"journal-article","created":{"date-parts":[[2023,5,5]],"date-time":"2023-05-05T17:20:58Z","timestamp":1683307258000},"page":"s75-s80","update-policy":"https:\/\/doi.org\/10.1136\/crossmarkpolicy","source":"Crossref","is-referenced-by-count":10,"title":["Impact of tobacco spending on intrahousehold resource allocation in Montenegro"],"prefix":"10.1136","volume":"33","author":[{"ORCID":"https:\/\/orcid.org\/0000-0001-7342-155X","authenticated-orcid":false,"given":"Ana","family":"Mugosa","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0003-4027-1131","authenticated-orcid":false,"given":"Mirjana","family":"Cizmovic","sequence":"additional","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Violeta","family":"Vulovic","sequence":"additional","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"239","published-online":{"date-parts":[[2023,5,5]]},"reference":[{"key":"2024070202402324000_33.Suppl_2.s75.1","doi-asserted-by":"publisher","DOI":"10.1136\/tc.10.3.212"},{"key":"2024070202402324000_33.Suppl_2.s75.2","doi-asserted-by":"publisher","DOI":"10.1136\/tc.11.4.372"},{"key":"2024070202402324000_33.Suppl_2.s75.3","doi-asserted-by":"publisher","DOI":"10.2165\/00148365-200403040-00009"},{"key":"2024070202402324000_33.Suppl_2.s75.4","doi-asserted-by":"publisher","DOI":"10.1016\/j.socscimed.2005.07.032"},{"key":"2024070202402324000_33.Suppl_2.s75.5","doi-asserted-by":"publisher","DOI":"10.1016\/j.socscimed.2007.11.020"},{"key":"2024070202402324000_33.Suppl_2.s75.6","doi-asserted-by":"crossref","first-page":"1979","DOI":"10.1016\/j.socscimed.2008.01.007","article-title":"The crowding-out effects of tobacco and alcohol where expenditure shares are low: analyzing expenditure data for Taiwan","volume":"66","author":"Pu","year":"2008","journal-title":"Social Science & Medicine"},{"key":"2024070202402324000_33.Suppl_2.s75.7","unstructured":"Koch SF , Tshiswaka-Kashalala G . 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