Prevalence and intensity elasticity of cigarette smoking across wealth groups
| Variables | Prevalence elasticities | Intensity elasticities | ||||
| Model 1 | Model 2 | Model 3 | Model 1 | Model 2 | Model 3 | |
| Low-wealth group (60%) | ||||||
| Average consumption-weighted cigarette price (BDT per stick) | −0.58*** (0.11) | −0.84*** (0.20) | −0.88*** (0.20) | −0.08* (0.05) | −0.05 (0.05) | −0.04 (0.05) |
| Average consumption-weighted biri price (BDT per stick) | 0.01 (0.01) | 0.01 (0.02) | 0.00 (0.02) | 0.00 (0.00) | 0.00 (0.00) | 0.00 (0.00) |
| Wealth index (proxy of permanent income) | −0.17** (0.08) | −0.03 (0.15) | 0.00 (0.16) | 0.02 (0.06) | 0.01 (0.06) | 0.01 (0.06) |
| Observations | 7680 | 7680 | 7680 | 961 | 961 | 961 |
| Link test: coefficient of square of the predicted values | 5.67 | −0.06 | −0.13 | |||
| P value | 0.02 | 0.69 | 0.23 | |||
| Correlation among residuals of part 1 and part 2 | −0.03 | 0.07 | 0.07 | |||
| High-wealth group (40%) | ||||||
| Average consumption-weighted cigarette price (BDT per stick) | −0.30*** (0.11) | −0.35*** (0.13) | −0.37*** (0.14) | −0.05* (0.03) | −0.06** (0.03) | −0.04 (0.03) |
| Average consumption-weighted biri price (BDT per stick) | −0.08*** (0.03) | −0.10*** (0.04) | −0.12*** (0.04) | 0.01** (0.01) | 0.01 (0.01) | 0.01 (0.01) |
| Wealth index (proxy of permanent income) | 0.01 (0.12) | 0.08 (0.11) | 0.01 (0.11) | 0.03 (0.04) | 0.10* (0.05) | 0.07 (0.05) |
| Observations | 3791 | 2228 | 2228 | 599 | 599 | 599 |
| Link test: coefficient of square of the predicted values | −0.07 | −0.32 | −0.08 | |||
| P value | 0.94 | 0.14 | 0.25 | |||
| Correlation among residuals of part 1 and part 2 | 0.01 | 0.01 | 0.06 | |||
*, ** and *** indicate significance at 10%, 5% and 1% levels, respectively. SEs are in parentheses. The estimation attempts also controlled for different tobacco-related warnings, advertising, promotional initiatives, and perceptions related to smoking and tobacco taxes. The corresponding marginal effects are given in online supplemental tables 2 and 3. For the link test, the insignificance of coefficients of the square of the predicted values indicates the parsimonious nature of the specifications.
BDT, Bangladeshi taka.