Table 4

Association between cigarette price and minimum price laws: results from TUS-CPS

Variables(1)(2)(3)(4)(5)(6)(7)(8)
Baseline resultNumber of parties regulated >1Total markup across standard distributionTotal markup across standard distribution (Categorical)Cartage applied to base costAny taxes applied to base costOther fees applied to base costState does not allow coupons
Minimum pricing law0.0908*** (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 rate0.00996*** (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)
Observations49 54849 54849 54849 54849 54849 54849 54849 548
R20.1460.1470.1460.1460.1460.1470.1460.146
(9)(10)(11)(12)(13)(14)(15)


Variables
Consumers cannot receive below-cost couponBelow-cost combination sales not allowedTrade discounts may not be usedTrade discount definition does not include buy downs, etcParties may not meet competitor pricingPromotion variables applied pre-salePromotions applied at sale
Minimum pricing law0.0774** (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 rate0.00981*** (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-component0.0825* (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)
Observations49 54849 54849 54849 54849 54849 54849 548
R20.1460.1460.1460.1460.1460.1460.146
  • 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.