Cigarette Tax Pass-Through by Product Characteristics: Evidence from Nielsen ScanTrack Data

Xiaojin Wang, Yuqing Zheng, Michael Reed and Chen Zhen

No 205375, 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California from Agricultural and Applied Economics Association

Abstract: We use market-level scanner data collected from U.S. convenience stores in 2011 and 2012 to examine who bears the economic burden of cigarette taxes. We find cigarette taxes are fully passed through to consumer prices, suggesting consumers pay all the excess burden of these taxes. Tax incidence differs by class of cigarette; pass-through rates for premium packs and cartons are higher than those for discount packs and cartons, indicating possibilities of substitution in consumptions across tiers and brands.

Keywords: Agribusiness; Agricultural and Food Policy; Demand and Price Analysis; Health Economics and Policy (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-pub
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea15:205375

DOI: 10.22004/ag.econ.205375

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