Percentage change scenario for a 10% increase on cigarette prices by income quartile
| Panel A: change in cigarette expenditures | ||||
| Price elasticity | Quartile 1 | Quartile 2 | Quartile 3 | Quartile 4 |
| Lower bound | 0.40 | 0.19 | 0.13 | 0.05 |
| Estimated | 0.77 | 0.37 | 0.26 | 0.12 |
| Upper bound | 1.20 | 0.58 | 0.41 | 0.20 |
| Complete pass-through | 1.60 | 0.80 | 0.60 | 0.30 |
| Panel B: change in medical costs | ||||
| Price elasticity | Quartile 1 | Quartile 2 | Quartile 3 | Quartile 4 |
| Lower bound | −3.50 | −2.19 | −1.44 | −0.43 |
| Estimated | −2.44 | −1.55 | −1.05 | −0.31 |
| Upper bound | −1.17 | −0.78 | −0.57 | −0.18 |
| Panel C: change in income (years of life lost cost) | ||||
| Price elasticity | Quartile 1 | Quartile 2 | Quartile 3 | Quartile 4 |
| Lower bound | −3.68 | −5.58 | −2.01 | −0.50 |
| Estimated | −2.57 | −3.95 | −1.47 | −0.37 |
| Upper bound | −1.22 | −1.98 | −0.80 | −0.21 |
| Panel D: net income effect | ||||
| Price elasticity | Quartile 1 | Quartile 2 | Quartile 3 | Quartile 4 |
| Lower bound | 6.77 | 7.57 | 3.32 | 0.87 |
| Estimated | 4.24 | 5.13 | 2.26 | 0.56 |
| Upper bound | 1.19 | 2.18 | 0.96 | 0.18 |
Panel A shows the results from equation (5). Panel B shows the results from equation (6). Panel C shows the results from equation (7). Complete pass-through refers to elasticity equal to zero. All calculations use values from tables 2–4. Panel D is the negative of the sum of Panels A–C.