# delimit;
set more 1;
set memory 80m;

* increase maximum variables;
set matsize 200;

*define log;
log using michigan.log,replace;

*read in stata data file;
use michigan;

* construct new variables;
gen mi=state==26;    * michigan dummy;
gen hike=month>=33;  * treatment period dummy;
gen treatment=hike*mi;  * treatment dummy variable;
label var mi "michigan dummy variable";
label var hike "time period after tax hike";
label var treatment "=1 if in in after tax hike";


***********************************************;
***** question 1;
***********************************************;

* get means of smoking rates for the 2xs box;
sort mi hike;
by mi hike: sum smoked, detail;

*** get row differences and standard errors;
*** on differences;
by mi: reg smoked hike;

***********************************************;
***** question 2;
***********************************************;
* now run the regression;
reg smoked mi hike treatment;

***********************************************;
***** question 3;
***********************************************;
xi i.age i.mrace3 i.meduc6 i.parity i.state i.month*mi;
reg smoked mi _Imonth* treatment;

***********************************************;
***** question 4;
***********************************************;
* add other variables to the model;
reg smoked mi _Imonth* _Ip* _Ime* _Imrace* _Iage* married hispanic treatment;

***********************************************;
***** question 5 -- pretreatment mean for MI;
***********************************************;
sum smoked if mi==1 & (month>=21&month<=32);


***********************************************;
***** question 6;
***********************************************;
**** unrestricted model;
reg smoked mi _Imonth_2-_Imonth_32 _Ip* _Ime* _Imrace* _Iage* _ImonXmi_2-_ImonXmi_32 married hispanic  if month<=32;
test _ImonXmi_2 _ImonXmi_3 _ImonXmi_4 _ImonXmi_5 _ImonXmi_6 _ImonXmi_7 _ImonXmi_8
 _ImonXmi_9 _ImonXmi_10 _ImonXmi_11 _ImonXmi_12 _ImonXmi_13 _ImonXmi_14 _ImonXmi_15 _ImonXmi_16
 _ImonXmi_17 _ImonXmi_18 _ImonXmi_19 _ImonXmi_20 _ImonXmi_21 _ImonXmi_22 _ImonXmi_23  _ImonXmi_24
 _ImonXmi_25 _ImonXmi_26 _ImonXmi_27 _ImonXmi_28 _ImonXmi_29  _ImonXmi_30 _ImonXmi_31 _ImonXmi_32;
**** restricted model;
reg smoked mi _Imonth_2-_Imonth_32 _Ip* _Ime* _Imrace* _Iage* married hispanic  if month<=32;


***********************************************;
***** question 7 -- pennsylvania;
***********************************************;
**** unrestricted model;
reg smoked mi _Imonth_2-_Imonth_32 _Ip* _Ime* _Imrace* _Iage* _ImonXmi_2-_ImonXmi_32 married hispanic  if month<=32 & (state>=26);
test _ImonXmi_2 _ImonXmi_3 _ImonXmi_4 _ImonXmi_5 _ImonXmi_6 _ImonXmi_7 _ImonXmi_8
 _ImonXmi_9 _ImonXmi_10 _ImonXmi_11 _ImonXmi_12 _ImonXmi_13 _ImonXmi_14 _ImonXmi_15 _ImonXmi_16
 _ImonXmi_17 _ImonXmi_18 _ImonXmi_19 _ImonXmi_20 _ImonXmi_21 _ImonXmi_22 _ImonXmi_23  _ImonXmi_24
 _ImonXmi_25 _ImonXmi_26 _ImonXmi_27 _ImonXmi_28 _ImonXmi_29  _ImonXmi_30 _ImonXmi_31 _ImonXmi_32;

***********************************************;
***** question 7 -- iowa;
***********************************************;
**** unrestricted model;
reg smoked mi _Imonth_2-_Imonth_32 _Ip* _Ime* _Imrace* _Iage* _ImonXmi_2-_ImonXmi_32 married hispanic  if month<=32 & (state==19|state==26);
test _ImonXmi_2 _ImonXmi_3 _ImonXmi_4 _ImonXmi_5 _ImonXmi_6 _ImonXmi_7 _ImonXmi_8
 _ImonXmi_9 _ImonXmi_10 _ImonXmi_11 _ImonXmi_12 _ImonXmi_13 _ImonXmi_14 _ImonXmi_15 _ImonXmi_16
 _ImonXmi_17 _ImonXmi_18 _ImonXmi_19 _ImonXmi_20 _ImonXmi_21 _ImonXmi_22 _ImonXmi_23  _ImonXmi_24
 _ImonXmi_25 _ImonXmi_26 _ImonXmi_27 _ImonXmi_28 _ImonXmi_29  _ImonXmi_30 _ImonXmi_31 _ImonXmi_32;

***********************************************;
***** question 9;
***********************************************;
gen wgt1=50*(1-mi)+mi;
gen wgt2=200*(1-mi)+mi;
reg smoked mi _Imonth* _Ip* _Ime* _Imrace* _Iage* married hispanic treatment [fweight=wgt1];
reg smoked mi _Imonth* _Ip* _Ime* _Imrace* _Iage* married hispanic treatment [fweight=wgt2];
log close;