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 t^{th} observation of the i^{th} equation. | ||||||

System R^{2} = where LL_{u} is log likelihood of the unrestricted model, LL_{b} 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 R^{2} = 0.819 |