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To Pool or Not to Pool: Homogeneous versus Heterogeneous Estimators Applied to Cigarette Demand

Badi H. Baltagi, James M. Griffin and Weiwen Xiong
The Review of Economics and Statistics
Vol. 82, No. 1 (Feb., 2000), pp. 117-126
Published by: The MIT Press
Stable URL: http://www.jstor.org/stable/2646677
Page Count: 10
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To Pool or Not to Pool: Homogeneous versus Heterogeneous Estimators Applied to Cigarette Demand
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Abstract

This paper reexamines the benefits of pooling and, in addition, contrasts the performance of newly proposed heterogeneous estimators. The analysis utilizes a panel data set from 46 American states over the period 1963 to 1992 and a dynamic demand specification for cigarettes. Also, the forecast performance of the various estimators is compared.

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