Economics Research International

Research Article

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

Table 4

Distributed lag adjustment path of per capita cigarette sales.

(a)


Quarters after the shock	Model 1						Model 2
	Own-price		Cross-price		CIAL		Own-price		Cross-price		CIAL
	Change	%	Change	%	Change	%	Change	%	Change	%	Change	%

0	−0.379	114	0.014	18	−0.00062	26	−0.376	116	0.014	20	−0.00022	14
1	−0.405	122	0.028	37	−0.00106	44	−0.401	123	0.027	39	−0.00053	34
2	−0.333	100	0.037	50	−0.00129	54	−0.328	101	0.035	50	−0.00075	47
3	−0.322	97	0.044	59	−0.00148	62	−0.316	97	0.041	59	−0.00090	57
4	−0.335	100	0.050	66	−0.00165	69	−0.328	101	0.047	67	−0.00103	65
5			0.055	73	−0.00180	75			0.051	73	−0.00114	72
6			0.059	78	−0.00191	80			0.055	78	−0.00122	77
7			0.062	82	−0.00200	84			0.058	82	−0.00129	81
8			0.065	86	−0.00208	87			0.060	86	−0.00135	85
9			0.067	88	−0.00214	89			0.062	89	−0.00139	88
10			0.068	91	−0.00219	91			0.064	91	−0.00143	90
11			0.070	92	−0.00222	93			0.065	92	−0.00146	92
12			0.071	94	−0.00226	94			0.066	94	−0.00148	94
13			0.072	95	−0.00228	95			0.067	95	−0.00150	95
14			0.073	96	−0.00230	96			0.067	96	−0.00152	96
15			0.073	97	−0.00232	97			0.068	97	−0.00153	97

(b)


Quarters after the initial shock	Model 3						Model 4
	Own-price		Cross-price		CIAL^±		Own-price		Cross-price		CIAL
	Change	%	Change	%	Change	%	Change	%	Change	%	Change	%

0	−0.374	116	0.013	21	—	—	−0.376	116	0.014	20	−0.00031	19
1	−0.398	123	0.024	40	—	—	−0.400	124	0.026	39	−0.00061	38
2	−0.326	101	0.031	51	—	—	−0.327	101	0.035	51	−0.00081	50
3	−0.314	97	0.036	60	—	—	−0.316	98	0.040	59	−0.00095	59
4	−0.327	101	0.041	67	—	—	−0.328	101	0.046	67	−0.00107	67
5			0.044	74	—	—			0.050	73	−0.00117	73
6			0.048	79	—	—			0.054	78	−0.00126	78
7			0.050	83	—	—			0.056	82	−0.00132	82
8			0.052	86	—	—			0.059	86	−0.00138	86
9			0.054	89	—	—			0.060	88	−0.00142	88
10			0.055	91	—	—			0.062	91	−0.00145	91
11			0.056	92	—	—			0.063	92	−0.00148	92
12			0.057	94	—	—			0.064	94	−0.00151	94
13			0.057	95	—	—			0.065	95	−0.00152	95
14			0.058	96	—	—			0.066	96	−0.00154	96
15			0.059	97	—	—			0.066	97	−0.00155	97

^±Long-run effect of smoke-free laws on cigarette sales is not statistically significant in this model.Therefore, the adjustment path is not calculated.Percent change is the size of the response in a quarter as a percentage of the long-run response.