Table 6.
The effect of tobacco tax on the prevalence of smoking
| Model 1 | Model 2 | Model 3 | |
|---|---|---|---|
| L.Smoking | 1.38*** | 1.36*** | 1.51*** |
| (0.09) | (0.06) | (0.16) | |
| GDP per cap. | 0.08* | 0.07*** | 0.11** |
| (0.04) | (0.03) | (0.04) | |
| Urbanization | 0.23 | 0.25 | 0.40 |
| (0.19) | (0.17) | (0.25) | |
| Tax | −0.09*** | −0.09*** | −0.13*** |
| (0.03) | (0.02) | (0.05) | |
| Death rate | −0.29 | −0.42** | |
| (0.24) | (0.19) | ||
| FDI | −0.06 | ||
| (0.04) | |||
| Constant | −2.90** | −0.28 | 0.20 |
| (1.39) | (2.32) | (2.15) | |
| Observations | 144 | 144 | 144 |
| Countries | 24 | 24 | 24 |
| Instruments | 15 | 16 | 17 |
| AR(2) | −0.63 | −0.66 | 0.74 |
| AR(2) p-value | 0.53 | 0.51 | 0.46 |
| Hansen | 5.59 | 6.16 | 3.22 |
| Hansen p-value | 0.35 | 0.29 | 0.67 |
| Wald chi2 | 554.88 | 2118.66 | 3212.68 |
| Wald chi2 p-value | 0.00 | 0.00 | 0.00 |
L.Smoking refers to the first lag of smoking prevalence; Death rate and FDI are introduced in Models 2 and 3 to show the robustness of the effect of tax; AR (2) refers to second order-serial correlation test; Hansen refers to the test for overidentification; Robust standard errors in parentheses; * p < 0.1, ** p < 0.05, *** p < 0.01; For brevity, year dummies are not reported