All data that we use in our study is the annual data of EU countries during 1996-2005. The lists of countries and the period of years are different for each commodity‘s estimation, depending on the availability of the data, and this information is shown in the results below. We use the sales of cigarettes per capita as the proxy of the retail sales of cigarettes. Sales of cigarettes per capita is calculated by the total number of cigarettes in each country, as supplied by the Tobacco Merchants Association (TMA), and the number of the population, which can be found at euro stat.