Table 6.

Own-price and cross-price elasticity and income elasticity estimates of cigarette demand by low-price and high-price tiers

	Smoking prevalence	Smoking intensity		Total elasticity (low-price brands)	Total elasticity (high-price brands)
		Low-price brands	High-price brands
Price of low-price brands	0.0487** (0.0150)	0.1191** (0.0489)	0.1335 (0.1551)	0.1678	–
Price of high-price brands	0.0318 (0.1567)	0.2643* (0.0619)	0.2512 (0.1994)	0.2643	0.2512
Income	0.0564* (0.0780)	0.1934** (0.0334)	1.4044* (0.1066)	0.1370	1.4608

(1) The SEs are in parentheses. The level of significance using two-tailed test is: *p<0.10, **p<0.05, ***p<0.01. (2) Total elasticity is estimated by summing only significant coefficients across smoking prevalence and smoking intensity. (3) For smoking prevalence, IV probit regression model coefficients are used. (4) For smoking intensity, SUR regression coefficients are used. (5) The coefficients that were not statistically significant are not used for the calculation of total elasticity.

*Indicates that even though income coefficient was significant in the IV probit regression in table 5, the marginal effect at the mean income is found to be insignificant. Nevertheless, it is considered in overall elasticity calculation.

IV, instrumental variable; SUR, seemingly unrelated regression.