EconPapers    
Economics at your fingertips  
 

Who Pays Cigarette Taxes? The Impact of Consumer Price Search

Philip DeCicca, Donald Kenkel () and Feng Liu
Additional contact information
Philip DeCicca: McMaster University and NBER

Authors registered in the RePEc Author Service: Philip DeCicca

The Review of Economics and Statistics, 2013, vol. 95, issue 2, 516-529

Abstract: We conduct an empirical study of the impact of consumer price search on the shifting of cigarette excise taxes to consumer prices. We use novel data on the prices that smokers report paying and document substantial price dispersion. We find that cigarette taxes are shifted at lower rates to carton buyers and, especially, smokers who buy cartons of cigarettes in a state other than their state of residence. We also find evidence that taxes are shifted at somewhat lower rates to the prices paid by heavier smokers and at somewhat higher rates to the prices paid by smokers of light cigarettes. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Keywords: cigarette taxes; consumers; smokers (search for similar items in EconPapers)
JEL-codes: H2 I1 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (21) Track citations by RSS feed

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/REST_a_00303 link to full text PDF (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Who Pays Cigarette Taxes? The Impact of Consumer Price Search (2010) Downloads
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:tpr:restat:v:95:y:2013:i:2:p:516-529

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Amitabh Chandra, Olivier Coibion, Bryan S. Graham, Shachar Kariv, Amit K. Khandelwal, Asim Ijaz Khwaja, Brigitte C. Madrian and Rohini Pande

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by Ann Olson ().

 
Page updated 2020-08-12
Handle: RePEc:tpr:restat:v:95:y:2013:i:2:p:516-529