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")