Table 6.
Instrumental variable 2SLS estimates of conditional demand for cigarette.
(1) All |
(2) Low |
(3) Medium |
(4) High |
|
---|---|---|---|---|
ln (Predicted price of Cigarette-2009 Taka/pack) | −0.0110*** (−5.67) |
−0.0161*** (−3.69) |
−0.00543 (−1.91) |
−0.00923** (−3.05) |
Monthly household income (2009 Taka) | 0.0000116*** (4.19) |
0.0000267*** (4.50) |
0.00000529 (1.15) |
0.00000707 (1.65) |
Female | 0.0193 (0.16) |
−0.181 (−1.38) |
0.0227 (0.08) |
0.237 (1.09) |
Age | −0.00212* (−2.03) |
−0.00175 (−1.03) |
−0.00442** (−2.82) |
−0.000407 (−0.21) |
Married | 0.0815* (2.57) |
0.0132 (0.24) |
0.108* (2.09) |
0.134* (2.45) |
Household size | −0.0102 (−1.17) |
−0.0224 (−1.21) |
0.0286* (2.25) |
−0.0321** (−2.59) |
| ||||
Education: | ||||
Primary (1–5 years) | 0.0972* (2.45) |
0.0991 (1.67) |
0.0641 (1.14) |
0.0786 (0.90) |
Secondary (6–8 years) | 0.0949* (2.26) |
0.189** (2.99) |
0.0230 (0.34) |
−0.0387 (−0.44) |
SSC (9–10 years) | 0.0889 (1.81) |
0.103 (1.24) |
0.0500 (0.70) |
−0.00190 (−0.02) |
HSC (11–12 years) | 0.0656 (1.11) |
0.109 (0.86) |
−0.120 (−1.14) |
0.0345 (0.35) |
Bachelor’s (14–16 years) | 0.154* (2.25) |
−0.0570 (−0.31) |
0.0883 (0.64) |
0.126 (1.19) |
Master’s (15–17 years) | −0.0158 (−0.09) |
0.475 (1.82) |
−0.218 (−0.75) |
−0.0661 (−0.33) |
Above Master’s | 0.0668 (0.34) |
−0.106 (−0.39) |
. . |
−0.0165 (−0.07) |
| ||||
Occupation: | ||||
Tenant farmer | 0.202** (3.01) |
0.274* (2.49) |
0.182 (1.73) |
0.198 (1.36) |
Self-employed in non- farm agriculture | 0.150 (1.95) |
0.174 (1.64) |
0.274 (1.94) |
0.0201 (0.13) |
Self-employed in non- agricultural activity | 0.263*** (3.97) |
0.178 (1.54) |
0.308** (3.08) |
0.259* (1.98) |
Farm wage laborer | 0.163* (2.52) |
0.0624 (0.65) |
0.261** (2.58) |
0.286* (2.02) |
Non-farm agricultural wage laborer | 0.208 (1.08) |
−0.462 (−1.25) |
0.352 (1.77) |
0.405* (2.25) |
Non-agricultural wage laborer | 0.243*** (3.41) |
0.278** (2.64) |
0.364*** (3.45) |
0.0884 (0.57) |
Professional | 0.154 (1.41) |
0.516** (2.58) |
0.0301 (0.13) |
0.153 (1.01) |
Managerial/administrative/clerking | 0.228** (3.02) |
0.191 (1.52) |
0.303** (2.73) |
0.121 (0.80) |
Student | 0.0859 (0.70) |
0.148 (0.56) |
0.370 (1.44) |
−0.0244 (−0.13) |
Unemployed | 0.248*** (3.91) |
0.263** (2.76) |
0.338** (3.29) |
0.148 (1.12) |
Homemaker | 0.0735 (0.52) |
0.0334 (0.14) |
0.206 (0.84) |
0.0787 (0.35) |
Others | 0.238*** (3.96) |
0.227* (2.49) |
0.340*** (3.55) |
0.118 (0.93) |
| ||||
Indoor smoking restriction (1 yes, 0 no) | −0.0345 (−1.29) |
0.0242 (0.57) |
−0.0538 (−1.25) |
−0.134** (−2.92) |
Workplace smoking restriction (1 yes, 0 no) | −0.0595 (−1.61) |
0.00811 (0.13) |
−0.0415 (−0.63) |
−0.102 (−1.80) |
Urban area of residence | 0.0158 (0.55) |
0.0740 (1.34) |
−0.0216 (−0.51) |
−0.0162 (−0.31) |
Wave 2 | 0.0813** (2.68) |
0.0975 (1.89) |
0.0560 (1.14) |
0.158* (2.44) |
| ||||
Observations | 3652 | 1311 | 1134 | 1207 |
Adjusted R2 | 0.022 | 0.051 | 0.046 | 0.043 |
| ||||
Test of endogeneity: H0: Variables are exogenous | ||||
| ||||
Robust regression F | 11.73 | 2.62 | 0.53 | 5.41 |
p-value | 0.00 | 0.11 | 0.46 | 0.02 |
Notes:
1. Columns 1, 2,3 and 4 report results for all, low, medium and high socio-economic status groups respectively.
2. The z statistics of the coefficients are in parentheses.
p < 0.05,
p < 0.01,
p < 0.001.
3. Omitted categories include male, illiterate, owner farmers (occupation), the time effect of wave 1, and rural area of residence.
4. The reduced form estimate of the price equation is reported in Appendix in Table A3.