Effects of Alcohol Taxation on Prices: A Systematic Review and Meta-Analysis of Pass-Through Rates

Jon Nelson and Moran John R. ()
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Moran John R.: Pennsylvania State University, Department of Health Policy and Administration, University Park, PA 16802, United States of America

The B.E. Journal of Economic Analysis & Policy, 2020, vol. 20, issue 1, 21

Abstract: This paper conducts the first review and meta-analysis for estimates of alcohol excise tax pass-through rates. A total of 30 empirical studies are examined. Several widely cited studies indicate substantial overshifting, suggesting imperfectly-competitive markets for alcohol. The narrative review provides insights for data coverage by country; econometric models; and results for under- or overshifting by beverage. Weighted-averages calculated for two samples show that beer taxes are overshifted and wine-spirits taxes are fully shifted. Meta-regressions corrected for publication bias indicate, however, that full-shifting cannot be rejected for any beverage. Results are useful for alcohol tax policy and future research on optimal taxation and incidence.

Keywords: tax incidence; excise taxes; optimal taxation; alcohol beverages; meta-analysis (search for similar items in EconPapers)
JEL-codes: C19 H21 H22 H25 I18 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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DOI: 10.1515/bejeap-2019-0134

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