Association between cigarette price and minimum price laws: results from TUS-CPS
| Variables | (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) |
|---|---|---|---|---|---|---|---|---|
| Baseline result | Number of parties regulated >1 | Total markup across standard distribution | Total markup across standard distribution (Categorical) | Cartage applied to base cost | Any taxes applied to base cost | Other fees applied to base cost | State does not allow coupons | |
| Minimum pricing law | 0.0908*** (0.0335) | 0.345*** (0.0614) | −0.0167 (0.0485) | 0.0337 (0.0541) | 0.129*** (0.0385) | 0.341*** (0.0522) | 0.125*** (0.0339) | 0.0866** (0.0346) |
| State cigarette excise tax rate | 0.00996*** (0.000219) | 0.0105*** (0.000224) | 0.00992*** (0.000220) | 0.00989*** (0.000221) | 0.00996*** (0.000219) | 0.0101*** (0.000220) | 0.00990*** (0.000214) | 0.00991*** (0.000218) |
| MPL-component | −0.360*** (0.0620) | 0.0518*** (0.0175) | −0.0958** (0.0390) | −0.329*** (0.0511) | −0.110** (0.0463) | 0.0285 (0.0439) | ||
| Total markup 0–6% | −0.323*** (0.0954) | |||||||
| Total markup 6–12% | 0.0705 (0.0547) | |||||||
| Total markup 12–18% | −0.00567 (0.0597) | |||||||
| Total markup >24% | 0.529*** (0.112) | |||||||
| Observations | 49 548 | 49 548 | 49 548 | 49 548 | 49 548 | 49 548 | 49 548 | 49 548 |
| R2 | 0.146 | 0.147 | 0.146 | 0.146 | 0.146 | 0.147 | 0.146 | 0.146 |
| (9) | (10) | (11) | (12) | (13) | (14) | (15) | ||
Variables | Consumers cannot receive below-cost coupon | Below-cost combination sales not allowed | Trade discounts may not be used | Trade discount definition does not include buy downs, etc | Parties may not meet competitor pricing | Promotion variables applied pre-sale | Promotions applied at sale | |
| Minimum pricing law | 0.0774** (0.0346) | −0.0215 (0.0436) | 0.136*** (0.0350) | 0.0823 (0.0591) | 0.0972*** (0.0326) | 0.0161 (0.0943) | 0.110** (0.0486) | |
| State cigarette excise tax rate | 0.00981*** (0.000218) | 0.00993*** (0.000220) | 0.00991*** (0.000217) | 0.00996*** (0.000220) | 0.00995*** (0.000218) | 0.00994*** (0.000216) | 0.00992*** (0.000218) | |
| MPL-component | 0.0825* (0.0437) | 0.145*** (0.0436) | −0.149*** (0.0464) | 0.00943 (0.0562) | −0.0575 (0.0853) | 0.0839 (0.0905) | −0.0220 (0.0445) | |
| Observations | 49 548 | 49 548 | 49 548 | 49 548 | 49 548 | 49 548 | 49 548 | |
| R2 | 0.146 | 0.146 | 0.146 | 0.146 | 0.146 | 0.146 | 0.146 |
Robust SEs in parentheses.
***p<0.01, **p<0.05, *p<0.1.
Promotion Variables Applied Pre-Sale (Trade Discount Used to Reduce Base Cost+Trade Discount Definition Includes Buydowns+State Permits Distributors to Meet Competitor Pricing+State Restricts Meeting of Competitor Pricing).
Promotions Applied at Sale (Coupons May Reduce Price Below Cost+Number of Parties Distributing Below-Cost Coupons to Consumer+Below-Cost Combination Sales Allowed+Restrictions on Below-Cost Combination Sales).
Control Variables not Shown: Age, Sex, Race, Education, Employment, Income, and Year/Month of CPS-TUS Interview, as well as indicator for carton purchase.