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sort state year gen ravgprs = avgprs/cpi

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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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Presentation Transcript
slide1

sort state year

  • gen ravgprs = avgprs/cpi
  • label var ravgpr "real average price during fiscal year, including sales taxes"
slide3

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
slide10

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
slide17

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)) " -----"
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