Table 3

Short-run elasticity estimation

Dependent variable: ΔLog (consumption of cigarettes)
Estimation method: ordinary least squares
Sample: 2005:01 2018:06
VariableCoefficientSEt-statisticP value
Z(t–1)−0.8072170.094631−8.5301890.0000
Δ Log (real retail pricet)−0.9116230.163823−5.5646950.0000
Δ Log (real retail pricet–1)−0.2798360.170829−1.6381030.1036
Δ Log (real retail pricet–2)0.0606830.1733160.3501270.7268
Δ Log (real incomet)0.3340040.03202710.428930.0000
Δ Log (real incomet–1)0.265830.0334467.8211320.0000
Δ Log (real incomet–2)0.1080070.0285203.7870080.0002
Christmas bonus−0.2413690.021381−11.288710.0000
Δ Log (Consumptiont–1)−0.3735770.070983−5.2629170.0000
Δ Log (Consumptiont–2)−0.3284390.05735−5.7268820.0000
Δ Log (real retail pricet)*D2016 −0.4713390.218453−2.1576230.0326
Δ Log (real retail pricet–1)*D2016 −0.0592710.221668−0.2673840.7896
Δ Log (real retail pricet–2)*D2016 −0.5165970.220334−2.3446080.0204
Intercept0.0179830.0045763.9295050.0001
Adjusted R squared0.803356
F-statistic50.65259
P value0.000000
  • Author estimations.