Models (3) and (4) include the HHI instead of year fixed effects, and Model (4) adds state-specific linear time trends to Model (3).8 Additionally, to capture the time invariant heterogeneity across C2ER cities/countries, all specifications include these area fixed effects.
Recall that the C2ER prices include excise taxes but do not include sales taxes, so our main results are interpreted as the pass-through for excise taxes only.
C2ER cities/counties, all specifications include these area fixed effects.
The data were collected by and purchased from the Council for Community and Economic Research (C2ER), formerly known as the American Chamber of Commerce Research Association (ACCRA).
C2ER collects data on the prices of a variety of consumer items.