Edoardo Di Porto and Federico Revelli, "Tax limited reaction functions", Journal of Applied Econometrics, Vol. 28, No. 5, 2013, pp. 823-839. The dataset contains data on Italian 100 provinces (indexed by "PROVINCE" and "id"), for 7 years (indexed by "YEAR" in the format: 2000, 2001,...,2006). The dataset is a panel dataset in long form (i.e. the first 100 observations are information that are specific for the first year, namely 2000, the second 100 observations are information that are specific for the second year, namely 2001 and so on). The dataset is stored in the .txt file: data-dr.txt, which is an ASCII file in DOS format. The file has 9 columns and 701 rows. The first row reports the labels of the variables, in detail: Column 1: PROVINCE is a string that contains the name of the province (the 100 different names of the Italian provinces). Column 2: ID is a variable that contains an identificative number assigned to any specific province, e.g. AGRIGENTO is 1, ALESSANDRIA is 2, and so on for all the 100 provinces. Column 3: YEAR = is a variable that identifies a specific year, i.e. 2000,...,2006. Column 4: ELECTION is a dummy varible that takes values 1 if a provincial election is held in that year. Column 5: RWD (Right Wing Dummy) is a dummy varible that takes value 1 if a "right wing" government is in charge in the province. Column 6: TAX is the tax rate (IPT) for the vehicle registration. It is a variable that takes values between 0 and 20. Column 7: GRANTS is a variable that identifies the amount of grants per capita given to the province in a specific year. The variable is measured in Euro per capita. Column 8: INCOME is a varible that identifies the level of income (value added) per capita earned in the province in a specific year. The variable is measured in Euro per capita. Column 9: VEHICLES is a varible that identifies the stock of vehicles registered in the province in the previous year. -Data Sources: Vehicle tax Rate: Automobile Club Italy and Quattroruote 2000-2006 Stock of vehicles: Public Registry of Vehicles 1999-2006 Income: National Statistics Institute (ISTAT) 1999-2005 Grants: Italian Government, Home 200-2006 Right Wing Dummy: Italian Government, Home 1999-2006 SPATIAL MATRIX The file spatial-weight-matrix.txt contains a 100x100 spatial weights matrix, precisely a spatial contiguity matrix (i.e. each row and each column corresponds to a province, and the corresponding entry is 1 if the two provinces share a border, 0 otherwise). At the beginning of the file are stored the 100 names of the provinces, these are ordered in the same way, as in the dataset itself. According to the software used to upload the matrix, these labels can be easily delated. Both data files are zipped in the file dr-files.zip. Unix/Linux users should use "unzip -a". ESTIMATION The file dr-estimations.txt, which is also zipped in dr-files.zip, provides some information about the estimation procedures.