The Demand for Cigarette Smuggling

Saba, Richard P, et al
Authors registered in the RePEc Author Service: Richard P. Saba ()

Economic Inquiry, 1995, vol. 33, issue 2, 189-202

Abstract: When taxes raise the full price of a good above that in nearby jurisdictions, consumers have an incentive to cross into the lower-price jurisdiction to make purchases. Using a simple microeconomic model of the consumer's border-crossing decision, the authors derive an econometric model to test the significance of border crossing and estimate the magnitude of the resulting sales. Examining cigarette sales in the continental United States over the period 1960 to 1986, they find strong evidence that border crossing is a significant factor in explaining sales differentials between states. Implications for demand estimation and excise tax policy are discussed. Coauthors are T. Randolph Beard; Robert B. Ekelund, Jr.; and Rand W. Ressler. Copyright 1995 by Oxford University Press.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (30)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:ecinqu:v:33:y:1995:i:2:p:189-202

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Economic Inquiry is currently edited by Preston McAfee

More articles in Economic Inquiry from Western Economic Association International Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().