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The following discussion question will require you to read the material Stock and Watson Ch 12 Information on the Application to the demand for cigarettes

The following discussion question will require you to read the material "Stock and Watson Ch 12" Information on the "Application to the demand for cigarettes" starts on page 339 and is referenced throughout later sections. In the study of cigarette demand in this reading - suppose we used an instrument: the number of trees per capita in the state. Is this instrument relevant? Is it exogenous

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