These conclusions are not definitive, however. For example, Grossman and colleagues (1998) found only a modest reduction in their estimate of the long-term price elasticity of demand (i.e., from −0.65 to −0.54) when controlling for fixed effects. Furthermore, Cook and Moore (2001), who used data on young adults participating in the National Longitudinal Survey of Youth conducted between 1982–1985 and 1988–1989, found that the effect of the State beer tax on drinking participation and binge drinking actually increased significantly in State fixed-effects models.
