Journal of Economics and Finance

, Volume 28, Issue 3, pp 413–421 | Cite as

Quantile-regression estimates of cigarette demand elasticities for the United States

  • Rajeev K. Goel
  • Rati Ram


Using a simple model and state-level cross-section U.S. data from 1993 to 1999, quantile-regression estimates of price elasticity and income elasticity for cigarette demand are obtained. It is noted that price elasticity shows a sizable variation across the high and low quantity-quartiles. There is a similar variability in the income elasticity, but most of these estimates lack statistical significance. Besides providing an indication of the variation in the price (and income) elasticity for different consumption levels, the exercise suggests some interpretative caution in regard to estimates from constant-elasticity models.


Quantile Regression Price Elasticity Income Elasticity Bottom Quartile Extreme Quantile 
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Copyright information

© Academy of Economics and Finance 2004

Authors and Affiliations

  • Rajeev K. Goel
    • 1
  • Rati Ram
    • 1
  1. 1.Department of EconomicsIllinois State UniversityNormal

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