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. Author manuscript; available in PMC: 2013 Nov 7.
Published in final edited form as: B E J Econom Anal Policy. 2010 Jul 31;10(1):10.2202/1935-1682.2438. doi: 10.2202/1935-1682.2438

Table 3b.

OLS models of smoking level, gradual regime switching

Model with SFE Model with sentiment
Regime 1 Regime 2 Regime 1 Regime 2
Age −0.082 0.687 −0.094 0.676
[0.091] [0.065]** [0.091] [0.065]**
Age-squared 0.092 −0.678 0.102 −0.667
[0.094] [0.074]** [0.094] [0.074]**
Less than high school 1.248 1.295 1.207 1.267
[0.501]* [0.863] [0.507]* [0.867]
High school dropout 0.381 1.246 0.420 1.180
[0.510] [0.511]* [0.526] [0.501]*
Two year college 0.591 −0.866 0.492 −0.932
[0.608] [0.421]* [0.600] [0.414]*
College grad or above 0.333 −2.994 0.410 −3.025
[0.610] [0.523]** [0.608] [0.512]**
Male 4.749 2.507 4.746 2.491
[0.380]** [0.339]** [0.379]** [0.338]**
White −2.436 5.644 −2.419 5.532
[0.625]** [0.459]** [0.654]** [0.453]**
Real cig tax −1.606 −5.465 0.815 −4.616
[2.695] [1.417]** [2.226] [1.302]**
Household income −0.070 −0.648 −0.133 −0.678
[0.398] [0.563] [0.379] [0.543]
Regulation index d −1.640 −1.979 −1.318 −1.604
[0.089]** [0.098]** [0.088]** [0.105]**
Anti smoking sentiment 0.094 −0.029
[0.190] [0.087]
Tax elasticity b −0.010 −0.072** 0.005 −0.061**
Price elasticity a −0.072 −0.424** 0.036 −0.359**
Income elasticity b,c −0.004 −0.038 −0.007 −0.039
Average real tax (unit: dollars) 0.118 0.232 0.118 0.232
Average real price 0.855 1.365 0.855 1.365
Average regulation index (range 0 – 10) N/A 6.301 N/A 6.301
Ratio of tax to price 0.138 0.170 0.138 0.170
Start-point of gradual switch 1964 1964 1964 1964
End-point of gradual switch 1977 1977 1977 1977
a

Price elasticity is calculated with the formula: ηprice = ηtax(αTax/Price)−1. ηtax is tax elasticity in the associated regime, the ratio of Tax/Price is measured at the average, and we assume α = 1 that cigarette taxes are passed through to prices at the one-to-one ratio.

b

Tax elasticity is calculated by the formula of βtax×(Tax/Cigarettes) at the average; income elasticity is calculated by βincome×(Income/Cigarettes) at the average.

c

Income elasticities in regime 1 for model 1 and 2 are estimated in the year of 1969 which is the first year when income information is available.

d

Coefficients on regulation index in regime 1 for both models are for the year of 1969 which is the first wave when index is available.

The numbers in brackets are robust standard errors, adjusted for state-level clustering.

+

significant at 10%;

*

significant at 5%;

**

significant at 1%.