CONSUMER RESPONSE TO CIGARETTE EXCISE TAX CHANGES

Consumer Response to Increases in the State Cigarette Tax

The case for increasing North Carolina's cigarette excise tax.

Excise Taxes, Consumer Demand, Over-Shifting, and Tax Revenue

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...

A Theory of Government Regulation of Addictive Bads: Optimal Tax Levels and Tax Incidence for Cigarette Excise Taxation