['Overview', 'of', 'Methods/Data', 'Used', 'to', 'Produce', 'the', 'Analysis', 'of', 'the', 'Economic', 'Impact', 'of', 'A', 'Federal', 'Lawsuit', 'The', 'cost', 'estimates', 'of', 'a', 'theoretical', 'federal', 'lawsuit', 'against', 'the', 'tobacco', 'industry', 'were', 'based', 'on', 'statements', 'made', 'by', 'Attorney', 'General', 'Janet', 'Reno.!', 'Price', 'impacts', 'of', 'a', 'theoretical', 'federal', 'lawsuit', 'are', 'assumed', 'to', 'be', 'passed', 'through', 'to', 'the', 'consumer', 'even', 'though', 'it', 'can’t', 'be', 'predicted', 'how', 'much,', 'if', 'any,', 'of', 'these', 'costs', 'each', 'manufacturer', 'would', 'decide', 'to', 'pass', 'through', 'to', 'consumers.', 'Price', 'increases', 'effect', 'volume.', 'These', 'changes', 'were', 'estimated', 'using', 'elasticity', 'estimates', 'provided', 'by', 'Assistant', 'Treasury', 'Secretary', 'for', 'Financial', 'Markets,', 'Gary', 'Gensler,', 'and', 'the', 'CBO.2', 'The', 'models', 'used', 'to', 'calculate', 'volume', 'changes,', 'revenue', 'changes,', 'and', 'employment', 'changes', 'are', 'based', 'on', 'an', 'input/output', 'framework', 'developed', 'by', 'the', 'federal', 'government', '—', 'the', 'standard', 'models', 'used', 'in', 'economic', 'impact', 'analysis.', 'Data', 'for', 'these', 'models', 'come', 'from', 'various', 'government', 'sources', '(including', 'the', 'Department', 'of', 'Commerce,', 'Bureau', 'of', 'Economic', 'Analysis,', 'the', 'Bureau', 'of', 'Labor', 'Statistics,', 'the', 'Bureau', 'of', 'the', 'Census,', 'the', 'Department', 'of', 'Agriculture),', 'as', 'well', 'as', 'the', 'Tobacco', 'Institute.', 'Volume', 'changes', 'effect', 'state', 'revenues,', 'MSA', 'payments', 'and', 'employment.', '©', 'The', 'decreased', 'volume', 'results', 'in', 'lower', 'state', 'excise', 'tax', 'collections', 'and', 'sales', 'taxes.', 'Increased', 'sales', 'tax', 'collections', '(due', 'to', 'the', 'higher', 'price}', 'are', 'added', 'back.', '®', 'All', 'MSA', 'payments', 'are', 'based', 'on', 'information', 'from', 'the', 'National', 'Association', 'of', 'Attorneys', 'General,', 'and', 'also', 'include', 'a', '2', 'percent', 'decline', 'in', 'national', 'volume.', '©', 'Employment', 'impacts', 'also', 'include', 'the', '2', 'percent', 'decline.', 'Tobacco', 'farming,', 'manufacturing', 'and', 'auction', 'jobs', 'are', 'proportionally', 'related', 'to', 'national', 'cigarette', 'demand;', 'retail', 'and', 'wholesaling', 'jobs', 'are', 'related', 'to', 'state', 'volumes.', 'Congressional', 'District', 'impact', 'maps', 'were', 'created', 'by', 'aggregating', 'the', 'economic', 'impacts', 'into', 'the', '13', 'industry', 'groups', 'for', 'each', 'Congressional', 'District.', 'Both', 'Claritas', 'Research,', 'a', 'for-profit', 'data', 'provider,', 'and', 'Dun', '&', 'Bradstreet', 'data', 'was', 'used', 'in', 'this', 'process.', '!', 'Attorney', 'General', 'Janet', 'Reno’s', 'testimony', 'before', 'the', 'House', 'Appropriations', 'Committee,', 'Commerce,', 'Justice,', 'State', 'and', 'Judiciary', 'Subcommittee', 'March', '11,', '1999.', '2', 'Proposed', 'Tobacco', 'Settlement', 'Issues', 'From', 'a', 'Federal', 'Perspective', 'Z06Legzgoz']