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1.3 Data: Sources and Types 57

TABLE 1.3 Selected Observations on Cigarette Sales, Prices, and Taxes, by State and Year for U.S.
States, 1985–1995

Observation State Year Cigarette Sales Average Price Total Taxes
Number Alabama 1985 (packs per capita) per Pack (cigarette
Arkansas 1985 excise tax + sales tax)
1 Arizona 1985 116.5 (including taxes)
2 128.5 $0.333
3 . . 104.5 $1.022 0.370
. . . 1.015 0.362
. . . . 1.086
. . .
West Virginia 1985 . . .
47 Wyoming 1985 . .
48 Alabama 1986 112.8 .
49 . 129.4 0.382
. . . 117.2 1.089 0.240
. . . 0.935 0.334
. . . 1.080
Wyoming . .
96 Alabama 1986 . . .
97 1987 . .
. . 127.8 .
. . . 115.8 0.240
. . . 1.007 0.335
. . 1.135
528 Wyoming . .
1995 . . .
. .
112.2 .
0.360
1.585

Note: The cigarette consumption data set is described in Appendix 12.1.

Panel Data

Panel data, also called longitudinal data, are data for multiple entities in which
each entity is observed at two or more time periods. Our data on cigarette con-
sumption and prices are an example of a panel data set, and selected variables and
observations in that data set are listed in Table 1.3. The number of entities in a
panel data set is denoted n, and the number of time periods is denoted T. In the
cigarette data set, we have observations on n = 48 continental U.S. states
(entities) for T = 11 years (time periods) from 1985 to 1995. Thus there is a total
of n * T = 48 * 11 = 528 observations.