Table 2: Panel fully modified ordinary least squares (FMLOS) estimates and the long-run elasticities.
(a)

CovariatesModel 1Model 2Model 3
FMOLS coef. 𝑡 -statOLS coef. 𝑡 -statFMOLS coef. 𝑡 -statOLS coef. 𝑡 -statFMOLS coef. 𝑡 -statOLS coef. 𝑡 -stat

Cigarette price (real)−0.33313.913−0.30910.498−0.32513.440−0.29910.152−0.32313.469−0.29610.009
Smokeless tobacco price (real)0.0762.8810.0632.3840.0702.6580.0572.1680.0602.2830.0461.745 Ψ
Per capita income (real)−0.000044.285−0.000044.590−0.000044.634−0.000055.044−0.000055.288−0.000055.861
Workplace CIAL: percentage of population−0.2394.702−0.2926.220
Restaurant CIAL: Percentage of population −0.1593.667–0.1714.426
Bar CIAL: percentage of population0.0801.560 (NS)0.0972.277
Spring0.0833.5050.0735.3870.0833.4660.0735.3470.0833.4710.0745.392
Summer0.1676.9060.15210.9090.1686.9190.15010.7890.1686.8930.15010.740
Fall0.0733.0190.0543.8930.0722.9780.0533.8200.0733.0020.0543.847

ElasticityMeanMeanMean

Own-price elasticity −0.750−0.731−0.727
Cross-price elasticity 0.1850.1710.148
Income elasticity−0.895−0.969−1.116
CIAL elasticity−0.023−0.0290.012

Stationarity tests of FMOLS residuals 𝑡 -bar 𝑃 value 𝑡 -bar 𝑃 value 𝑡 -bar 𝑃 value

IPS−2.260−2.2260−2.2260
CADF−2.2110−2.1710.001−2.2310

(b)

CovariatesModel 4Model 5
FMOLS coef. 𝑡 -statOLS coef. 𝑡 -statFMOLS coef. 𝑡 -statOLS coef. 𝑡 -stat

Cigarette price (real)−0.32413.389−0.29810.140−0.32413.493−0.2929.895
Smokeless tobacco price (real)0.0682.5940.0562.1200.0672.5240.0521.95 Ψ
Per capita income (real)−0.000044.704−0.000055.095−0.000055.010−0.000055.596
Any CIAL: percentage of population−0.1603.559−0.1834.496
All CIAL: percentage of population−0.0921.33 Ψ−0.1131.89 (NS)
Spring0.0823.4580.0735.3450.0833.4800.0745.374
Summer0.1686.9220.15010.7930.1666.7900.15110.757
Fall0.0722.9730.0533.8270.0732.9790.0543.856

Price, income, and CIAL elasticitiesMeanMean

Own-price elasticity −0.728−0.729
Cross-price elasticity with smokeless tobacco0.1670.163
Income elasticity−0.984−1.052
CIAL elasticity−0.030−0.004

Stationarity tests of the FMOLS residuals 𝑡 -bar 𝑃 value 𝑡 -bar 𝑃 -value

IPS−2.2550−2.2210
CADF−2.1850.001−2.1610.002

Note: all models include market-specific intercepts and time trends and year-specific intercepts. IPS denotes the Im et al. [20] test for nonstationarity; CADF denotes Pesaran’s [40] cross-sectionally augmented Dickey-Fuller (CADF) test.
The symbol “Ψ” next to the 𝑡 -statistics indicates that the coefficient is not statistically significant at 5% sig. level.