Work

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

Year: 2015

Type: preprint

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.

Source: RePEc: Research Papers in Economics

DOI: 10.22004/ag.econ.205375

Authors: Wang, Xiaojin, Zheng, Yuqing, Reed, Michael, Zhen, Chen

Institutions: University of Kentucky, RTI International

Language: English

Topic: Consumer Market Behavior and Pricing

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2255626969

Cites: 9

Cited by:

Related to: 10