Price Responsiveness of Cigarette Demand in US: Retail Scanner Data (1994–2007)

Table 3

Error-correction model estimates.

Covariates	Model 1		Model 2		Model 3		Model 4		Model 5
	Coef.	𝑃>|𝑡|	Coef.	𝑃>|𝑡|	Coef.	𝑃>|𝑡|	Coef.	𝑃>|𝑡|	Coef.	𝑃>|𝑡|
Cigarette price (real)	−0.379	0.000	−0.376	0.000	−0.374	0.000	–0.376	0.000	−0.375	0.000
Smokeless tobacco price (real)	0.014	0.545	0.014	0.540	0.013	0.570	0.014	0.547	0.013	0.564
Per capita income (real)	−0.0000536	0.001	−0.000055	0.000	−0.0000578	0.000	−0.0000551	0.000	−0.0000566	0.000
Workplace CIAL: percentage of population	−0.062	0.209	—		—		—		—
Restaurant CIAL: percentage of population	—		−0.02189	0.603	—		—		—
Bar CIAL: percentage of population	—		—		0.010	0.848	—		—
Any CIAL: percentage of population	—		—		—		−0.031	0.481	—
All CIAL: percentage of population	—		—		—		—		0.011	0.874
Error correction (1st lag)	−0.213	0.000	−0.21341	0.000	−0.213	0.000	−0.213	0.000	−0.212	0.000
Per capita cigarette units (1st lag)	0.095	0.000	0.095129	0.000	0.095	0.000	0.095	0.000	0.095	0.000
Per capita cigarette units (2nd lag)	−0.157	0.000	−0.15729	0.000	−0.158	0.000	−0.157	0.000	−0.158	0.000
Spring	0.074	0.000	0.0741	0.000	0.074	0.000	0.074	0.000	0.074	0.000
Summer	0.134	0.000	0.134347	0.000	0.134	0.000	0.134	0.000	0.134	0.000
Fall	0.039	0.000	0.038818	0.000	0.039	0.000	0.039	0.000	0.039	0.000

Note: The fully modified ordinary least squares (FMOLS) regression residual of (1) is used as the error correction term in (2).
CIAL: clean indoor air law.