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Finally, the following formula popularized by Deaton and used in the work of Chelwa and van Walbeek 25 was adopted to derive the price elasticity of tobacco demand: Where w i denotes the average total household tobacco expenditure, and 2i and 1i , generated from Equations 3 and 4, denote the coefficients of the unobserved price and are given by: Where was the estimate generated when This methodological approach was criticized by Gibson and Kim 30 on the grounds that it overestimates the price elasticity of tobacco demand as a result of failing to fully control for quality responses to increase in price

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