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Cigarette smuggling is a significant and growing challenge for policymakers

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LaFaive, Fleenor and Nesbit (2008), LaFaive and Nesbit (2010) and LaFaive, Nesbit and Drenkard (2016) exclude North Carolina from their samples because it is modeled as the primary source of commercially smuggled cigarettes in the second stage regression.[70] Given the changes implemented in our second stage specification (discussed below), we do not exclude North Carolina or any other contiguous state from our sample

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