CigarettesSW {AER} | 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$rprice <- with(CigarettesSW, price/cpi)
    CigarettesSW$rincome <- with(CigarettesSW, income/population/cpi)
    CigarettesSW$tdiff <- with(CigarettesSW, (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) ~ tdiff, data = c1995)
    coeftest(fm_s1, vcov = hc1)
    fm_s2 <- lm(log(packs) ~ fitted(fm_s1), data = c1995)
    fm_ivreg <- ivreg(log(packs) ~ log(rprice) | tdiff, data = c1995)
    coeftest(fm_ivreg, vcov = hc1)

    ## Equation 12.15
    fm_ivreg2 <- ivreg(log(packs) ~ log(rprice) + log(rincome) | log(rincome) + tdiff, data = c1995)
    coeftest(fm_ivreg2, vcov = hc1)
    ## Equation 12.16
    fm_ivreg3 <- ivreg(log(packs) ~ log(rprice) + log(rincome) | log(rincome) + tdiff + I(tax/cpi),
      data = c1995)
    coeftest(fm_ivreg3, vcov = hc1)

    ## More examples can be found in:
    ## help("StockWatson2007")

[Package AER version 1.2-6 Index]