Goolsbee, Austan; Lovenheim, Michael F.; Slemrod, Joel - In: American Economic Journal: Economic Policy 2 (2010) 1, pp. 131-54
This paper documents the rise of the Internet as a source of state tax-free cigarettes and its impact on taxed sales … merged with data on Internet penetration, this paper documents that there has been a substantial increase in the sensitivity … of taxable cigarette sales to state tax rates that is correlated with the rise of Internet usage within states. The …