The Incidence of Tobacco Taxation: Evidence from Geographic Micro-Level Data
This paper uses a recent increase in Wisconsin’s tobacco tax as a natural experiment to measure the economic incidence of tobacco taxation, using micro-level data on cigarette prices from retail locations in Wisconsin and states that share its border. We find that Wisconsin’s $1 tobacco tax increase was over-shifted to consumers; they pay the entire amount of the tax as well as a premium of between 8–17 cents per pack of cigarettes. We also use geo-coded data to test if the incidence of the tobacco tax is different for locations near the border of states with different tobacco taxation.
Year of publication: |
2009
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Authors: | Hanson, Andrew ; Sullivan, Ryan |
Published in: |
National Tax Journal. - National Tax Association - NTA. - Vol. 62.2009, 4, p. 677-98
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Publisher: |
National Tax Association - NTA |
Saved in:
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