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Goldin & Homonoff - DataSpace at Princeton University

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Table X: Instrumenting for Cigarette Prices with Excise Tax<br />

Extensive Margin Intensive Margin<br />

(1) (2) (3) (4)<br />

OLS IV OLS IV<br />

Price -0.045 ∗∗ -0.132 ∗∗∗ -1.437 ∗∗ -6.288 ∗∗∗<br />

(0.017) (0.042) (0.543) (1.561)<br />

Sales Tax -0.075 -0.032 2.240 4.295<br />

(0.150) (0.163) (7.679) (6.972)<br />

Price*Low-income 0.015 0.018 -0.048 -0.196<br />

(0.018) (0.026) (0.780) (1.056)<br />

Sales*Low-income -0.351 -0.348 -18.052 ∗∗ -16.890 ∗∗<br />

(0.219) (0.217) (8.204) (7.530)<br />

F-test 2.87 2.84 4.92 5.05<br />

prob>F 0.10 0.09 0.03 0.02<br />

N 934,106 934,106 198,914 198,914<br />

Standard errors clustered <strong>at</strong> the st<strong>at</strong>e level in parentheses.<br />

All specific<strong>at</strong>ions include individual demographic characteristics, economic conditions,<br />

income trend, and st<strong>at</strong>e, year, and calendar month fixed effects.<br />

Price includes the excise tax.<br />

The F-st<strong>at</strong> is for the test of equality between the price*low-income and sales*low-income<br />

interaction coefficients.<br />

∗ p < 0.10, ∗∗ p < 0.05, ∗∗∗ p < 0.01<br />

48

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