<< Chapter < Page Chapter >> Page >

The data you will use in this project are in the MS Excel file Smkdata.xls . The variables included in the file are as follows:

Definition of the cigarette consumption data set.
Column Variable Definition
A Country Name of country
B Country ID Integar from 1 to 22, each designating a country
C Year Year of observation (1964, …, 1990)
D Tobacco Total grams of tobacco sold per individual 15 years or older
E Price Real price of 20 grams of tobacco in 1990 US cents (= Nominal price per E 20 grams of tobacco divided by the Gross Domestic Price deflator)
F Consump Per capita private final consumption expenditures in 1990 US dollars
G Unemp Number of unemployed persons per 1000 members of the workforce
H AgeDist Age distribution. This variable attempts to measure the differences in intensity of smoking as a function of age. It is equal to the relative consumption rate of tobacco in the UK observed between 1966 and 1981 by age group times the percentage of the population in the country in that age group.
I Ban Dummy variable equal to 1 if the country has a complete ban on tobacco advertising. The six countries in the sample with a complete ban and the first year of the ban are: Iceland (1972), Norway (1976), Finland (1979), Portugal (1984), Italy (1984), and Canada (1989).
J BanTime The number of years since the ban was put in place (if ban went into effect in 1972, then years 1964-1972 are equal to 0, year 1973 equals 1, year 1974 equals 2, etc.)

(a) How do these variables match the ones suggested in the discussion of equations (1), (2), and (3)?

(b) Estimate the fixed effects models of the following versions of equations (1), (2), and (3):

  1. Equations (1), (2), and (3) as specified above.
  2. Equations (1) and (2) with squared terms for the price, income, unemployment rate, and the age distribution included. This regression is designed to test for non-linearity.
  3. Equations (1) and (2) with the squared terms mentioned in 2 that are statistically significant plus the following new variables: Ban*Time, Ban*Price, and Ban*Consump. (You must create these variables) This regression allows for an effect of the Ban on the slopes of the other explanatory variables.
  4. Equation (3) with the following new variables: Ban*Log(Time), Ban*Log(Price), and Ban*Log(Consump).
  5. Equations (1), (2), and (3) as estimated in 3 and 4 with a variable that counts the number of years that a total ban has been in effect (BanTime) and its square (BanTime 2 ). This regression allows for a changing impact of a ban the longer it is in effect.

Report the results of your regressions in a table that allows you to comment on the stability of your estimation results over specifications.

(c) Do these results support any of the theories suggested above?

(d) What, if any, policy conclusions would you make given your estimations?

(e) Assume for the moment that you “believe” your results you got in (5). Sketch out a strategy you would follow to forecast the impact of a ban in a country that does not currently have a ban.

Note: The data in this problem are from Stewart, Michael J. (1993) “The Effect on Tobacco Consumption of Advertising Bans in OECD Countries,” International Journal of Advertising 12 (2): 155-180. The data set can be downloaded from the author's website .

Bibliography

Cameron, A. Colin and Pravin K. Trivedi (2005). Microeconometrics: Methods and Applications (New York: Cambridge University Press).

Greene, W. H. (2003). Econometric Analysis , 5 th edition (Upper Saddle River, NJ: Prentice-Hall).

Hsiao, Cheng (2003). Analysis of Panel Data , 2 nd Edition (New York: Cambridge University Press).

StataCorp (2003). Stata Statistical Software: Release8.0 (College Station, TX: Stata Corporation).

Wooldridge, J. M. (2002). Econometric Analysis of Cross Section and Panel Data (Cambridge, MA: MIT Press).

Questions & Answers

Application of nanotechnology in medicine
what is variations in raman spectra for nanomaterials
Jyoti Reply
I only see partial conversation and what's the question here!
Crow Reply
what about nanotechnology for water purification
RAW Reply
please someone correct me if I'm wrong but I think one can use nanoparticles, specially silver nanoparticles for water treatment.
Damian
yes that's correct
Professor
I think
Professor
what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
Rafiq
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
Damian
How we are making nano material?
LITNING Reply
what is a peer
LITNING Reply
What is meant by 'nano scale'?
LITNING Reply
What is STMs full form?
LITNING
scanning tunneling microscope
Sahil
how nano science is used for hydrophobicity
Santosh
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
Rafiq
what is differents between GO and RGO?
Mahi
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
Rafiq
if virus is killing to make ARTIFICIAL DNA OF GRAPHENE FOR KILLED THE VIRUS .THIS IS OUR ASSUMPTION
Anam
analytical skills graphene is prepared to kill any type viruses .
Anam
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
Bob
The nanotechnology is as new science, to scale nanometric
brayan
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Damian
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
Renato
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
?
Kyle
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
Adin
why?
Adin
what school?
Kyle
biomolecules are e building blocks of every organics and inorganic materials.
Joe
anyone know any internet site where one can find nanotechnology papers?
Damian Reply
research.net
kanaga
sciencedirect big data base
Ernesto
Introduction about quantum dots in nanotechnology
Praveena Reply
hi
Loga
what does nano mean?
Anassong Reply
nano basically means 10^(-9). nanometer is a unit to measure length.
Bharti
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
Privacy Information Security Software Version 1.1a
Good
Got questions? Join the online conversation and get instant answers!
Jobilize.com Reply

Get the best Algebra and trigonometry course in your pocket!





Source:  OpenStax, Econometrics for honors students. OpenStax CNX. Jul 20, 2010 Download for free at http://cnx.org/content/col11208/1.2
Google Play and the Google Play logo are trademarks of Google Inc.

Notification Switch

Would you like to follow the 'Econometrics for honors students' conversation and receive update notifications?

Ask