Instrumental variable 2SLS estimates of conditional demand for cigarettes
| Demographic | Socioeconomic status group | |||
|---|---|---|---|---|
| (1) All | (2) Low | (3) Medium | (4) High | |
| ln (predicted price of cigarettes, 2009 Taka/pack) | −0.0110*** (−5.67) | −0.0161*** (−3.69) | −0.00543 (−1.91) | −0.00923** (−3.05) |
| Monthly household income (2009 Taka) | 0.0000116*** (4.19) | 0.0000267*** (4.50) | 0.00000529 (1.15) | 0.00000707 (1.65) |
| Female | 0.0193 (0.16) | −0.181 (−1.38) | 0.0227 (0.08) | 0.237 (1.09) |
| Age | −0.00212* (−2.03) | −0.00175 (−1.03) | −0.00442** (−2.82) | −0.000407 (−0.21) |
| Married | 0.0815* (2.57) | 0.0132 (0.24) | 0.108* (2.09) | 0.134* (2.45) |
| Household size | −0.0102 (−1.17) | −0.0224 (−1.21) | 0.0286* (2.25) | −0.0321** (−2.59) |
| Education | ||||
| Primary (1–5 years) | 0.0972* (2.45) | 0.0991 (1.67) | 0.0641 (1.14) | 0.0786 (0.90) |
| Secondary (6–8 years) | 0.0949* (2.26) | 0.189** (2.99) | 0.0230 (0.34) | −0.0387 (−0.44) |
| Secondary School Certificate (9–10 years) | 0.0889 (1.81) | 0.103 (1.24) | 0.0500 (0.70) | −0.00190 (−0.02) |
| Higher Secondary Certificate (11–12 years) | 0.0656 (1.11) | 0.109 (0.86) | −0.120 (−1.14) | 0.0345 (0.35) |
| Bachelor's (14–16 years) | 0.154* (2.25) | −0.0570 (−0.31) | 0.0883 (0.64) | 0.126 (1.19) |
| Master's (15–17 years) | −0.0158 (−0.09) | 0.475 (1.82) | −0.218 (−0.75) | −0.0661 (−0.33) |
| Above Master's | 0.0668 (0.34) | −0.106 (−0.39) | – | −0.0165 (−0.07) |
| Occupation | ||||
| Tenant farmer | 0.202** (3.01) | 0.274* (2.49) | 0.182 (1.73) | 0.198 (1.36) |
| Self-employed in non-farm agriculture | 0.150 (1.95) | 0.174 (1.64) | 0.274 (1.94) | 0.0201 (0.13) |
| Self-employed in non-agricultural activity | 0.263*** (3.97) | 0.178 (1.54) | 0.308** (3.08) | 0.259* (1.98) |
| Farm wage labourer | 0.163* (2.52) | 0.0624 (0.65) | 0.261** (2.58) | 0.286* (2.02) |
| Non-farm agricultural wage labourer | 0.208 (1.08) | −0.462 (−1.25) | 0.352 (1.77) | 0.405* (2.25) |
| Non-agricultural wage labourer | 0.243*** (3.41) | 0.278** (2.64) | 0.364*** (3.45) | 0.0884 (0.57) |
| Professional | 0.154 (1.41) | 0.516** (2.58) | 0.0301 (0.13) | 0.153 (1.01) |
| Managerial/administrative/clerking | 0.228** (3.02) | 0.191 (1.52) | 0.303** (2.73) | 0.121 (0.80) |
| Student | 0.0859 (0.70) | 0.148 (0.56) | 0.370 (1.44) | −0.0244 (−0.13) |
| Unemployed | 0.248*** (3.91) | 0.263** (2.76) | 0.338** (3.29) | 0.148 (1.12) |
| Homemaker | 0.0735 (0.52) | 0.0334 (0.14) | 0.206 (0.84) | 0.0787 (0.35) |
| Others | 0.238*** (3.96) | 0.227* (2.49) | 0.340*** (3.55) | 0.118 (0.93) |
| Indoor smoking restriction (1 yes, 0 no) | −0.0345 (−1.29) | 0.0242 (0.57) | −0.0538 (−1.25) | −0.134** (−2.92) |
| Workplace smoking restriction (1 yes, 0 no) | −0.0595 (−1.61) | 0.00811 (0.13) | −0.0415 (−0.63) | −0.102 (−1.80) |
| Urban area of residence | 0.0158 (0.55) | 0.0740 (1.34) | −0.0216 (−0.51) | −0.0162 (−0.31) |
| Wave 2 | 0.0813** (2.68) | 0.0975 (1.89) | 0.0560 (1.14) | 0.158* (2.44) |
| Observations | 3652 | 1311 | 1134 | 1207 |
| Adjusted R2 | 0.022 | 0.051 | 0.046 | 0.043 |
| Test of endogeneity: H0: variables are exogenous | ||||
| Robust regression F | 11.73 | 2.62 | 0.53 | 5.41 |
| p Value | 0.00 | 0.11 | 0.46 | 0.02 |
The z statistics of the coefficients are in parentheses. Omitted categories include male gender, illiterate, owner farmers (occupation), the time effect of wave 1 and rural area of residence. The reduced form estimate of the price equation is reported in online appendix in table A3.
*p<0.05, **p<0.01, ***p<0.001.
2SLS, two-stage least squares.