Based on the lowest BIC, we derived six smoking trajectory groups as follows: Group 1 (22.05%, never smokers), Group 2 (11.16%, former smokers), Group 3 (12.75%, new current smokers), Group 4 (20.22%, decreasing light smokers), Group 5 (29.52%, steady moderate smokers), and Group 6 (4.30%, steady heavy smokers)
These differences are mainly due to government regulations, taxes, and brand choices
Future work may be concerned with dissecting the various components of the response using appropriate control conditions
This is consistent with much of the previous literature as transportation costs account for a very small portion (less than one percent) of the total value of cigarettes, suggesting that such costs should exert a negligible impact on smuggling.[] The OLS estimation results in which we regress the residuals from the log-linear nave model against the above described tax differential and population variables is presented in Columns 3 and 4 of Table 3.[] The estimates corresponding to the linear nave model are presented for robustness purposes only and can be found in Columns 1 and 2 of Table 3