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sort state year gen ravgprs = avgprs/cpi label var ravgpr "real average price during fiscal year, including sales taxes". label. gen rtax = tax/cpi label var rtax "real average Cig specifice tax during fiscal year" gen rtaxs = taxs/cpi

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sort state year gen ravgprs = avgprs/cpi

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Sort state year gen ravgprs avgprs cpi

  • sort state year

  • gen ravgprs = avgprs/cpi

  • label var ravgpr "real average price during fiscal year, including sales taxes"


Sort state year gen ravgprs avgprs cpi

label


Sort state year gen ravgprs avgprs cpi

  • gen rtax = tax/cpi

  • label var rtax "real average Cig specifice tax during fiscal year"

  • gen rtaxs = taxs/cpi

  • label var rtaxs "real average total tax during fiscal year,including sales taxes"

  • gen rtaxso = rtaxs-rtax

  • label var rtaxso "real average sales tax per pack during fiscal year"

  • gen lpackpc = log(packpc)

  • gen lravgprs = log(ravgprs)


Real percapita state income

Real Percapita State Income

  • gen perinc = income/(pop*cpi)

  • gen lperinc = log(perinc)

    encode-Encode string into numeric

  • encode state, gen(snum)


10 year differences

10-year differences

  • gen ltpackpc = log(packpc/packpc[_n-1])

  • gen ltavgprs = log(ravgprs/ravgprs[_n-1])

  • gen ltperinc = log(perinc/perinc[_n-1])

  • gen dtrtaxs = rtaxs-rtaxs[_n-1]

  • gen dtrtax = rtax-rtax[_n-1]

  • gen dtrtaxso = rtaxso-rtaxso[_n-1]

  • keep if year==1995


Ols and iv estimation cross section 1995

OLS and IV estimation - cross section -- 1995

  • reg lravgprs rtaxso, r


Sort state year gen ravgprs avgprs cpi

  • reg lpackpc lravgprs, r


Sort state year gen ravgprs avgprs cpi

  • ivreg lpackpc (lravgprs = rtaxso), r


Sort state year gen ravgprs avgprs cpi

  • ivreg lpackpc (lravgprs = rtaxso) lperinc, r

  • ivreg lpackpc (lravgprs = rtaxso rtaxs) lperinc, r


Ols and iv estimation differences 1995 1985

OLS and IV estimation - Differences 1995-1985

  • reg ltpackpc ltavgprs ltperinc,r


Sort state year gen ravgprs avgprs cpi

  • ivreg ltpackpc (ltavgprs = dtrtaxso) ltperinc, r


Sort state year gen ravgprs avgprs cpi

  • reg ltavgprs dtrtaxso ltperinc, r

  • test dtrtaxso


Sort state year gen ravgprs avgprs cpi

  • ivreg ltpackpc (ltavgprs = dtrtax) ltperinc, r


Sort state year gen ravgprs avgprs cpi

  • reg ltavgprs dtrtax ltperinc, r

  • test dtrtax


Sort state year gen ravgprs avgprs cpi

  • ivreg ltpackpc (ltavgprs = dtrtax dtrtaxso) ltperinc, r

  • predict e, resid


Sort state year gen ravgprs avgprs cpi

  • reg e dtrtaxso dtrtax ltperinc

  • drop e

  • qui test dtrtaxso dtrtax

  • dis "---- OverID stat: " r(df)*r(F) _skip(10) "p-value: " chiprob(r(df)-1,r(df)*r(F)) " -----"


Sort state year gen ravgprs avgprs cpi

  • reg ltavgprs dtrtax dtrtaxso ltperinc, r

  • test dtrtax dtrtaxso


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