The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne

Exercise 19

Studies have shown that states with higher cigarette taxes have lower rates of teenage smoking. But subsequent studies that excluded the states of North Carolina, Kentucky, and Virginia found no significant relationship between the tax on cigarettes and the incidence of teenage smoking. Can you think of a plausible explanation? Why is there no significant difference in the incidence of teenage smoking between high-tax and low-tax states when North Carolina, Kentucky, and Virginia are excluded from the study?