-------------------------------------------------------------------------------
       log:  d:\bill\fall2008\econ30331\cig_regression.log
  log type:  text
 opened on:  28 Aug 2008, 15:59:05

. 
. use state_cig_data

. 
. * dscribe data
. desc

Contains data from state_cig_data.dta
  obs:         1,020                          
 vars:             7                          28 Aug 2008 15:39
 size:        29,580 (99.8% of memory free)
-------------------------------------------------------------------------------
              storage  display     value
variable name   type   format      label      variable label
-------------------------------------------------------------------------------
state           str2   %9s                    2-digit state code
year            int    %8.0g                  year
state_tax       float  %9.0g                  state tax in cents per pack
retail_price    float  %9.0g                  average retail price, nominal
federal_tax     byte   %8.0g                  federal tax in cents per pack
packs_pc        float  %9.0g                  packs of cigarettes per capita
cpi             float  %9.0g                  consumer price index, 2000=1.000
-------------------------------------------------------------------------------
Sorted by:  

. 
. * generate real taxes
. gen real_tax=(state_tax+federal_tax)/cpi

. 
. * get means of real tax and per capita consumption
. sum packs_pc real_tax

    Variable |       Obs        Mean    Std. Dev.       Min        Max
-------------+--------------------------------------------------------
    packs_pc |      1020    106.6021    28.29377       31.9      245.4
    real_tax |      1020    56.05339    18.45741   17.84456        145

. 
. * get correlation coefficient
. corr packs_pc real_tax
(obs=1020)

             | packs_pc real_tax
-------------+------------------
    packs_pc |   1.0000
    real_tax |  -0.6115   1.0000


. 
. * get regression estimate
. reg packs_pc real_tax

      Source |       SS       df       MS              Number of obs =    1020
-------------+------------------------------           F(  1,  1018) =  607.95
       Model |  305010.398     1  305010.398           Prob > F      =  0.0000
    Residual |  510736.995  1018  501.706282           R-squared     =  0.3739
-------------+------------------------------           Adj R-squared =  0.3733
       Total |  815747.392  1019  800.537186           Root MSE      =  22.399

------------------------------------------------------------------------------
    packs_pc |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
    real_tax |  -.9373448    .038016   -24.66   0.000    -1.011944    -.862746
       _cons |   159.1434   2.243373    70.94   0.000     154.7412    163.5456
------------------------------------------------------------------------------

. 
. 
end of do-file

. exit, clear