(0.06) (0.06)
Percentage some college 0.19 0.19
(0.04) (0.05)
Percentage associates degree 0.07 0.07
(0.03) (0.03)
Percentage BA 0.16 0.17
(0.05) (0.05)
Percentage graduate school 0.08 0.09
(0.04) (0.04)
Percentage work 0.65 0.65
(0.06) (0.06)
Percentage unemployed 0.03 0.04
(0.02) (0.02)
Source: CPS Tobacco Supplements. Means include individuals living only
in an identified MSA. Standard deviations of each variable are in
parentheses.
TABLE 6
IV ESTIMATES OF CIGARETTE DEMAND MODELS, 1992-2002
Native American
Reservations Included?: No No
Independent Variable (i) (ii)
Panel A: Intensive Margin
Dependent Variable = Log
Mean MSA Daily Cigarette
Consumption of Smokers
Log real home state price -0.148 ** -0.058
([PI].sub.1]) (0.023) (0.048)
Difference in log price
([PI].sub.2])
Difference in log price
squared ([PI].sub.3])
Log distance
Log distance x difference
in log price ([PI].sub.4])
Year -0.013 **
(0.004)
Panel B: Extensive Margin
Dependent Variable = Log
Mean MSA Smoking
Participation Rate
Log real home state price -0.210 ** -0.176 **
([PI].sub.1]) (0.030) (0.061)
Difference in log price
([PI].sub.2])
Difference in log price
squared ([PI].sub.3])
Log distance
Log distance x difference
in log price ([PI].sub.4])
Year -0.005
(0.006)
Panel C: Full Margin
Dependent Variable = Log
Mean MSA Daily Cigarette
Consumption of All
Individuals
Log real home state price -0.437 ** -0.326 **
([PI].sub.1]) (0.046) (0.093)
Difference in log price
([PI].sub.2])
Difference in log price
squared ([PI].sub.3])
Log distance
Log distance x difference
in log price ([PI].sub.4])
Year -0.017 **
(0.009)
Native American
Reservations Included?: No No
Independent Variable (iii) (iv)
Panel A: Intensive Margin
Dependent Variable = Log
Mean MSA Daily Cigarette
Consumption of Smokers
Log real home state price -0.175 ** -0.115 *
([PI].sub.1]) (0.022) (0.059)
Difference in log price 0.882 * 0.767
([PI].sub.2]) (0.494) (0.481)
Difference in log price 0.449 0.546
squared ([PI].sub.3]) (0.818) (0.808)
Log distance 0.003 0.004
(0.007) (0.007)
Log distance x difference -0.226 ** -0.213 **
in log price ([PI].sub.4]) (0.080) (0.079)
Year -0.007
(0.005)
Panel B: Extensive Margin
Dependent Variable = Log
Mean MSA Smoking
Participation Rate
Log real home state price -0.231 ** -0.227 **
([PI].sub.1]) (0.029) (0.084)
Difference in log price 1.059 1.051
([PI].sub.2]) (0.673) (0.662)
Difference in log price -0.393 -0.388
squared ([PI].sub.3]) (1.049) (1.036)
Log distance 0.004 0.004
(0.008) (0.008)
Log distance x difference -0.211 ** -0.210 **
in log price ([PI].sub.4]) (0.108) (0.106)
Year -0.001
(0.006)
Panel C: Full Margin
Dependent Variable = Log
Mean MSA Daily Cigarette
Consumption of All
Individuals
Log real home state price -0.489 ** -0.457 **
([PI].sub.1]) (0.045) (0.125)
Difference in log price 2.547 ** 2.483 **
([PI].sub.2]) (1.064) (1.044)
Difference in log price 0.114 0.151
squared ([PI].sub.3]) (1.772) (1.703)
Log distance 0.011 0.011
(0.011) (0.012)
Log distance x difference -0.584 ** -0.576 **
in log price ([PI].sub.4]) (0.161) (0.158)
Year -0.004
(0.012)
Native American
Reservations Included?: Yes Yes
Independent Variable (v) (vi)
Panel A: Intensive Margin
Dependent Variable = Log
Mean MSA Daily Cigarette
Consumption of Smokers
Log real home state price -0.181 ** -0.098
([PI].sub.1]) (0.022) (0.071)
Difference in log price 0.748 * 0.690
([PI].sub.2]) (0.452) (0.445)
Difference in log price 0.369 0.412
squared ([PI].sub.3]) (0.786) (0.772)
Log distance 0.003 0.003
(0.009) (0.019)
Log distance x difference -0.180 ** -0.177 **
in log price ([PI].sub.4]) (0.091) (0.090)
Year -0.006
(0.006)
Panel B: Extensive Margin
Dependent Variable = Log
Mean MSA Smoking
Participation Rate
Log real home state price -0.229 ** -0.295 **
([PI].sub.1]) (0.034) (0.104)
Difference in log price 0.836 0.913
([PI].sub.2]) (0.633) (0.644)
Difference in log price -0.639 -0.128
squared ([PI].sub.3]) (0.960) (0.122)
Log distance -0.015 -0.016
(0.011) (0.011)
Log distance x difference -0.12 -0.208 *
in log price ([PI].sub.4]) (0.121) (0.128)
Year 0.009
(0.010)
Panel C: Full Margin
Dependent Variable = Log
Mean MSA Daily Cigarette
Consumption of All
Individuals
Log real home state price -0.444 ** -0.527 **
([PI].sub.1]) (0.052) (0.154)
Difference in log price 2.171 ** 2.269 **
([PI].sub.2]) (0.892) (0.894)
Difference in log price -0.416 -0.435
squared ([PI].sub.3]) (1.391) (1.384)
Log distance -0.01 -0.011
(0.016) (0.017)
Log distance x difference -0.420 ** -0.430 **
in log price ([PI].sub.4]) (0.171) (0.173)
Year 0.011
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