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Table 5 Rational addiction cigarette consumption estimates: model comparisons.

From: Are smokers rational addicts? Empirical evidence from the Indonesian Family Life Survey

  Total Male Female
  OLS 2SLS GMM System GMM OLS 2SLS GMM System GMM OLS 2SLS GMM System GMM
C t-1 0.244 0.520 0.521 0.846 0.238 0.485 0.487 0.790 0.415 0.114 0.292 1.096
  [0.021] [0.113] [0.112] [0.130] [0.022] [0.110] [0.110] [0.126] [0.117] [0.517] [0.449] [0.382]
C t+1 0.318 0.133 0.119 -0.749 0.315 0.137 0.123 -0.761 0.293 0.866 * 0.806 * -0.243
  [0.027] [0.152] [0.145] [0.078] [0.028] [0.151] [0.150] [0.080] [0.104] [0.386] [0.365] [0.230]
Pc t0 -0.154 -0.118 -0.129 -0.358 -0.151 -0.127 -0.138 -0.384 -0.362 -0.367 -0.289 -0.567
  [0.045] [0.070] [0.066] [0.084] [0.046] [0.073] [0.072] [0.087] [0.261] [0.337] [0.320] [0.575]
Pa t0 0.182 0.152 0.157 0.253 0.184 0.159 0.163 0.234 0.158 0.019 -0.006 0.448
  [0.019] [0.035] [0.035] [0.060] [0.019] [0.037] [0.037] [0.062] [0.110] [0.139] [0.133] [0.225]
Ln-exp -0.021 -0.016 -0.015 0.023 -0.027 -0.019 -0.017 0.03 0.131 0.286 0.294 0.037
  [0.018] [0.018] [0.018] [0.056] [0.018] [0.019] [0.019] [0.058] [0.098] [0.155] [0.154] [0.309]
Constant 0.469* 0.333 0.36 1.455 0.527* 0.422 0.44 1.832* -0.528 -1.489 -1.966 -1.494
  [0.226] [0.351] [0.354] [0.768] [0.231] [0.374] [0.372] [0.776] [1.327] [1.848] [1.764] [2.369]
N 1790 1783 1783 1783 1725 1719 1719 1719 65 64 64 64
R-squared 0.41 0.33 0.33   0.40 0.34 0.34   0.45 0.25 0.27  
F-test 181.45 104.72 81.72 27.63 171.7 79.72 80.96 26.34 9.9 5.06 5.76 2.51
# instruments   12 12 39   12 12 39   12 12 39
# excl. instruments   8 8    8 8    8 8  
Short-run elasticity -0.154 -0.118 -0.129 -0.358 -0.151 -0.127 -0.138 -0.384 -0.362 -0.367 -0.289 -0.567
Long-run elasticity -0.352 -0.340 -0.358 -0.396 -0.338 -0.336 -0.354 -0.395 -1.240 -18.35 2.949 -3.857
Discount factor 1.303 0.256 0.228 -0.885 1.324 0.282 0.253 -0.963 0.706 7.596 2.760 -0223
Discount rate -0.233 2.910 3.378 -2.130 -0.244 2.540 2.959 -2.038 0.416 -0.868 -0.638 -5.510
  1. significant at 10%; *significant at 5%; significant at 1%; Robust standard errors in [brackets]
  2. Note: See equation (1): The short run price elasticity is the coefficients estimates of cigarette price, β 3 ; the long run price elasticity is calculated using the expression E ( L n C i t ) / E ( L n P c i t ) = β ^ 3 / ( 1 β ^ 1 β ^ 2 ) ; and the implied discount factor is β 2 1 and the implied discount rate is β 1 2 -1