New study reveals key factors influencing demand for cigarettes.
The article introduces a new test to compare different models in a study about cigarette demand. The test is used to see which model best predicts cigarette consumption based on factors like price and location. The researchers found that including the average price of cigarettes in nearby states and the spatial lag of cigarette consumption gives the most accurate results. Their test showed good accuracy even with small sample sizes, making it a useful tool for future studies in this area.