Table 4

Random-effects estimation of price equation for premium and discount brand cigarettes in Canada and the USA, 2002–2005

 CanadaThe USA
PremiumDiscountPremiumDiscount
Household income
▸ $10 000–$29 9990.002640.0105−0.003850.00378
(0.70)(1.51)(−1.23)(1.22)
▸ $30 000–$44 9990.003510.0131−0.002570.00706*
(0.91)(1.85)(−0.79)(1.98)
▸ $45 000–$59 9990.004100.006620.0002090.00471
(1.02)(0.80)(0.06)(1.19)
▸ $60 000–$74 9990.005520.01240.003250.0109*
(1.32)(1.61)(0.88)(2.08)
▸ $75 000–$99 9990.007120.00639−0.001470.0108*
(1.76)(0.77)(−0.39)(2.02)
▸ $100 000–$149 9990.004070.0172*−0.0006130.0128
(0.89)(2.01)(−0.14)(1.55)
▸ $150 000 and over0.002910.0370**0.00601−0.0210
(0.41)(2.60)(0.97)(−1.33)
Highest level of education
▸ Completed high school0.0002080.008110.00487−0.00337
(0.08)(1.73)(1.81)(−0.80)
▸ Technical, trade school, community college0.0002730.007980.00544*−0.00273
(0.11)(1.63)(1.96)(−0.66)
▸ Some university–no degree0.005550.01280.00379−0.000587
(1.74)(1.80)(1.15)(−0.11)
▸ Completed university degree0.005510.0152**0.00576−0.00568
(1.62)(2.69)(1.70)(−0.93)
▸ Postgraduate degree0.0109**0.01790.0166***0.000354
(2.64)(1.46)(3.58)(0.04)
Age−0.000562***−0.000347**−0.000464***−0.000360***
(−9.38)(−3.00)(−8.27)(−4.15)
Male0.00279−0.0008600.000724−0.00130
(1.68)(−0.28)(0.46)(−0.54)
White, English only0.00808*0.00898−0.0185***−0.0160***
(2.30)(0.98)(−8.92)(−4.17)
Married, cohabitating−0.00408*−0.00212−0.00631***−0.00119
(−2.36)(−0.65)(−3.93)(−0.48)
 CanadaThe USA
PremiumDiscountPremiumDiscount
Received tobacco industry promotions−0.00469**−0.00425−0.00668***0.000586
(−2.64)(−1.89)(−4.54)(0.34)
Year 20030.00776***−0.0000475−0.0116***−0.00705***
(6.02)(−0.02)(−8.22)(−4.60)
Year 20040.0222***−0.0109***−0.0142***−0.00630**
(13.14)(−3.57)(−8.99)(−3.20)
Year 20050.0221***−0.0142***−0.00937***0.000726
(11.10)(-4.27)(−5.10)(0.34)
Fixed effects for province (Canada)/region (USA) of residence
Prince Edward Island/Pennsylvania−0.007450.00794−0.0380***0.00554
(−0.79)(0.63)(−6.40)(0.47)
Nova Scotia/North-east−0.0275***−0.0243**−0.001950.0236
(−4.07)(−2.63)(−0.31)(1.83)
New Brunswick/Illinois−0.0532***−0.0466***−0.0349***−0.00497
(−6.35)(−4.80)(−5.17)(−0.37)
Quebec/Michigan−0.0937***−0.110***−0.0182**0.0398**
(−17.32)(−13.79)(−2.73)(3.01)
Ontario/Ohio−0.0876***−0.0936***−0.0580***−0.0220*
(−16.54)(−11.70)(−9.72)(−1.97)
Manitoba/Mid-west0.003810.0188−0.0650***−0.0243*
(0.59)(1.76)(−11.80)(−2.30)
Saskatchewan/Florida0.00780−0.00578−0.0726***−0.0418***
(0.97)(−0.51)(−12.53)(−3.84)
Alberta/Texas−0.00950−0.0247**−0.0698***−0.0366***
(−1.66)(−2.79)(−11.73)(−3.41)
British Columbia/South−0.0143*−0.00880−0.0805***−0.0405***
(−2.49)(−1.04)(−14.80)(−3.89)
/California−0.0345***−0.00171
(−6.07)(−0.16)
/West−0.0451***−0.00425
(−7.65)(−0.39)
Observations4387157545751730
  • The omitted categories include single non-white, non-English female smokers with highest level of education below high school, household income under $10 000, who did not receive any tobacco industry promotion in the year 2002, who resided in Newfoundland and Labrador in case of Canada and in New York region in case of the USA.

  • The estimated coefficients represent marginal effects for small change in continuous variables and for discrete change in categorical variables from 0 to 1 with reference to the omitted categories.

  • t statistics are reported in parentheses below the coefficient estimates.

  • *p<0.05, **p<0.01, ***p<0.001.