{
  "citation": "Stock, J. H. and Watson, M. W. (2007). Introduction to Econometrics, 2nd edition. Boston: Pearson Addison Wesley. Chapter 12, the demand for cigarettes.",
  "deviation_evidence": null,
  "doi": null,
  "excerpt": "TSLS estimates, Z = sales tax, cig-only tax (m = 2): −1.28 ln(P) (0.25)",
  "independent": null,
  "item_set": null,
  "kind": "textbook",
  "known_deviation": null,
  "licence": "Copyright Pearson; cited, not reproduced.",
  "locator": "Stock and Watson (2007), Chapter 12, cigarette demand, 1995 cross-section, TSLS with the real general sales tax per pack and the real cigarette-specific tax per pack (two instruments) (equation (12.16) as the AER package's CigarettesSW examples number it), coefficient on ln(P cigarettes)",
  "metric": null,
  "n_items": null,
  "page": "slide 12-10",
  "read_copy_sha256": "440deb62d0973f49baceb1694c3e87372f8941d8de210126310ed67f7aeedf44",
  "retrieved_at": "2026-10-15",
  "se": 0.25,
  "se_as_published": "0.25",
  "source_id": "stock_watson_2007.eq12_16.paper",
  "tolerance_reason": null,
  "units": "price elasticity (log points of packs per log point of real price)",
  "url": "https://econweb.umd.edu/~chao/Teaching/Econ422/IV%20Regression%202.pdf",
  "value": -1.28,
  "value_as_published": "−1.28",
  "verified_by": "secondary_source",
  "verified_note": "Read on 2026-10-15 from 'Econ 422 Lecture Notes, IV Regression 2' (University of Maryland; the notes say they are slightly modified versions of lecture notes provided by Stock and Watson, 2007), slide 12-10 (PDF page 10), from the rendered page; the slides before it print the Stata runs behind the equations ('ivreg ... if year==1995, r'). The book itself was not read; the AER package's CigarettesSW examples number these models (12.15) and (12.16). The slide prints 9.89 – 1.28 ln(P) + 0.28 ln(Income) with (0.96) (0.25) (0.25); the excerpt writes its en dash as a minus sign."
}