First-stage regression results
| Variables | Unit value | SE | Cigarettes | SE | Cigarettes | SE |
| (Per pack) | Budget share—consumers | Budget share—whole sample | ||||
| Total expenditure (ln) | 0.222*** | −0.009 | −0.025*** | −0.001 | −0.004*** | (0.001) |
| Household size (ln) | −0.109*** | −0.009 | −0.002** | −0.001 | 0.001 | (0.001) |
| Male ratio | −0.036** | −0.015 | 0.013*** | −0.002 | 0.017*** | (0.001) |
| Adult ratio | −0.133*** | −0.022 | 0.010*** | −0.003 | 0.010*** | (0.002) |
| Mean of years of education | 0.003 | −0.002 | −0.001*** | 0.000 | 0.000 | (0.000) |
| Maximum education | 0.001 | −0.002 | 0.000 | 0.000 | −0.000 | (0.000) |
| Household type | ||||||
| Employed—omitted | ||||||
| Unemployed | −0.059*** | −0.021 | −0.001 | −0.002 | 0.002 | 0.0017 |
| Pensioners | −0.090*** | −0.011 | −0.005*** | −0.001 | −0.006** | 0.000 |
| Cluster dummies | F(192,5573) | F(192,5573) | F(200,12294) | |||
| 28.425*** | 5.748*** | 5.237*** | ||||
| Constant | −1.311*** | −0.064 | 0.203*** | −0.008 | 0.034*** | (0.005) |
| Observations | 5775 | 5775 | 12 503 | |||
| R-squared | 0.574 | 0.289 | 0.104 | |||
| F | 107.9 | 116.6 | 44.02 | |||
| r2_a | 0.558 | 0.263 | 0.088 |
SEs in parentheses: ***p<0.01, **p<0.05, *p<0.1.
Author’s calculation is based on the Household Budget Survey data. Households were grouped in 209 clusters which on average included 59 households.