Can Policy Changes Be Treated as Natural Experiments? Evidence from State Excise Taxes
نویسندگان
چکیده
منابع مشابه
Excise tax avoidance: the case of state cigarette taxes.
We conduct an applied welfare economics analysis of cigarette tax avoidance. We develop an extension of the standard formula for the optimal Pigouvian corrective tax to incorporate the possibility that consumers avoid the tax by making purchases in nearby lower tax jurisdictions. To provide a key parameter for our formula, we estimate a structural endogenous switching regression model of border...
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Because excise taxes are independent of product price, rate hikes are predicted to lower the relative cost of high-priced goods, encouraging a shift towards their purchase. Using scanner data on cigarette sales from 29 states over a six-year period, we examine whether tax hikes encourage a flight to quality. Results demonstrate that a 1¢ hike in taxes increases retail prices of name brand and g...
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The introduction of the Single Market resulted in a switch from destination to origin-based taxation of cross-border transactions by individuals. The theory of commodity tax competition predicts that this change should give rise to excise tax competition and thus intensify strategic interaction in the setting of excise taxes. In this paper, we provide an empirical test of this prediction using ...
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The imposition of taxes on specific consumption goods and services (i.e. excise taxes) not only is a time-honoured activity but also makes common sense: government financing can be combined with other important social goals, in particular the reduction of externalities (costs imposed on other people) by making the taxed goods more expensive. Thus two goals can be attained at the same time, whic...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2002
ISSN: 1556-5068
DOI: 10.2139/ssrn.1808888