# CigarettesSW

From AER v1.2-4
by Achim Zeileis

##### Cigarette Consumption Panel Data

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

- Keywords
- datasets

##### 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). http://wps.aw.com/aw_stock_ie_2/

##### References

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

##### See Also

##### 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")
```

*Documentation reproduced from package AER, version 1.2-4, License: GPL-2 | GPL-3*

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