Question: In Chapter 12, state-level panel data were used to estimate the price elasticity of demand for cigarettes, using the state sales tax as an instrumental

In Chapter 12, state-level panel data were used to estimate the price elasticity of demand for cigarettes, using the state sales tax as an instrumental variable. Consider in particular regression (1) in Table 12.1. In this case, in your judgment does the local average treatment effect differ from the average treatment effect? Explain.

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