Table 2

Estimated elasticity coefficients of cigarette consumption using the CBS model with homogeneity and symmetry restrictions imposed

EquationTotal tobacco expenditurePriceSummary statistics
Domestic cigarettesImported cigarettesCigarsRMSE (%)Durbin-Watson
Notes: RMSE (root mean square error) =  where and are the values of the simulated and actual errors in the tth observation of the ith equation.
System R2 =  where LLu is log likelihood of the unrestricted model, LLb is log likelihood of the base model, T is the number of observations, and N is the number of equations in the system.
Note: t ratios are shown in parentheses.
*Significant at 5% levels.
Domestic cigarettes−0.25384 (−13.332)*−0.06617 (−3.027)*0.06816 (3.027)*−0.00198 (−1.072)1.021.847
Imported cigarettes0.25360 (13.121)*0.06816 (3.027)*−0.07024 (−3.080)*0.00207 (1.333)1.041.759
Cigars0.00023 (0.165)−0.00198 (−1.072)0.00207 (1.333)−0.00009 (−0.114)
System R2 = 0.819