CigarettesSW | R Documentation |

## Cigarette Consumption Panel Data

### Description

Panel data on cigarette consumption for the 48 continental US States from 1985–1995.

### Usage

`data("CigarettesSW")`

### Format

A data frame containing 48 observations on 7 variables for 2 periods.

- state
Factor indicating state.

- year
Factor indicating year.

- cpi
Consumer price index.

- population
State population.

- packs
Number of packs per capita.

- income
State personal income (total, nominal).

- tax
Average state, federal and average local excise taxes for fiscal year.

- price
Average price during fiscal year, including sales tax.

- taxs
Average excise taxes for fiscal year, including sales tax.

### Source

Online complements to Stock and Watson (2007).

### References

Stock, J.H. and Watson, M.W. (2007). *Introduction to Econometrics*,
2nd ed. Boston: Addison Wesley.

### See Also

`StockWatson2007`

, `CigarettesB`

### Examples

```
## Stock and Watson (2007)
## data and transformations
data("CigarettesSW")
CigarettesSW <- transform(CigarettesSW,
rprice = price/cpi,
rincome = income/population/cpi,
rtax = tax/cpi,
rtdiff = (taxs - tax)/cpi
)
c1985 <- subset(CigarettesSW, year == "1985")
c1995 <- subset(CigarettesSW, year == "1995")
## convenience function: HC1 covariances
hc1 <- function(x) vcovHC(x, type = "HC1")
## Equations 12.9--12.11
fm_s1 <- lm(log(rprice) ~ rtdiff, data = c1995)
coeftest(fm_s1, vcov = hc1)
fm_s2 <- lm(log(packs) ~ fitted(fm_s1), data = c1995)
fm_ivreg <- ivreg(log(packs) ~ log(rprice) | rtdiff, data = c1995)
coeftest(fm_ivreg, vcov = hc1)
## Equation 12.15
fm_ivreg2 <- ivreg(log(packs) ~ log(rprice) + log(rincome) | log(rincome) + rtdiff, data = c1995)
coeftest(fm_ivreg2, vcov = hc1)
## Equation 12.16
fm_ivreg3 <- ivreg(log(packs) ~ log(rprice) + log(rincome) | log(rincome) + rtdiff + rtax,
data = c1995)
coeftest(fm_ivreg3, vcov = hc1)
## More examples can be found in:
## help("StockWatson2007")
```