Table 2
Estimated elasticity coefficients of cigarette consumption using the CBS model with homogeneity and symmetry restrictions imposed
| Equation | Total tobacco expenditure | Price | Summary statistics | |||
|---|---|---|---|---|---|---|
| Domestic cigarettes | Imported cigarettes | Cigars | RMSE (%) | 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) | 1.02 | 1.847 |
| Imported cigarettes | 0.25360 (13.121)* | 0.06816 (3.027)* | −0.07024 (−3.080)* | 0.00207 (1.333) | 1.04 | 1.759 |
| Cigars | 0.00023 (0.165) | −0.00198 (−1.072) | 0.00207 (1.333) | −0.00009 (−0.114) | – | – |
| System R2 = 0.819 | ||||||