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. Author manuscript; available in PMC: 2014 Jul 10.
Published in final edited form as: Tob Control. 2013 Oct 8;23(0 1):i39–i47. doi: 10.1136/tobaccocontrol-2012-050835

Table 7.

The estimates of price and income elasticity of demand for cigarettes in Bangladesh.

PRICE ELASTICITY INCOME ELASTICITY
All Low Medium High All Low Medium High
Smoking prevalence-Probit (A) 0.04 0.01 −0.00 0.13 0.09 0.13 0.08 0.07
Smoking prevalence-IV Probit (B) −0.29 −0.50 −0.31 −0.15 0.13 0.14 0.10 0.09
Conditional demand-OLS (C) −0.21 −0.43 −0.07 −0.14 0.08 0.17 0.04 0.03
Conditional demand-2SLS (D) −0.20 −0.25 −0.09 −0.21 0.10 0.18 0.04 0.09
Total (B+D) −0.49 −0.75 −0.40 −0.36 0.23 0.33 0.15 0.18

Notes:

1. ‘Low’, ‘Medium’ and ‘High’ refer to the socio-economic status of respondents based on housing index.

2. The total price elasticity is obtained by summing the IV probit estimates in row B and the 2SLS estimates in row D.