000 | 02575cam a22003497 4500 | ||
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001 | w27117 | ||
003 | NBER | ||
005 | 20211020103741.0 | ||
006 | m o d | ||
007 | cr cnu|||||||| | ||
008 | 210910s2020 mau fo 000 0 eng d | ||
100 | 1 | _aGehrsitz, Markus. | |
245 | 1 | 4 |
_aThe Effect of Changes in Alcohol Tax Differentials on Alcohol Consumption / _cMarkus Gehrsitz, Henry Saffer, Michael Grossman. |
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_aCambridge, Mass. _bNational Bureau of Economic Research _c2020. |
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_a1 online resource: _billustrations (black and white); |
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490 | 1 |
_aNBER working paper series _vno. w27117 |
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500 | _aMay 2020. | ||
520 | 3 | _aWe show that tax-induced increases in alcohol prices can lead to substantial substitution and avoidance behavior that limits reductions in alcohol consumption. Causal estimates are derived from a natural experiment in Illinois where spirits and wine taxes were raised sharply and unexpectedly in 2009. Beer taxes were increased by only a trivial amount. We construct representative and consistent measures of alcohol prices and sales from scanner data collected for hundreds of products in several thousand stores across the US. Using several differences-in-differences models, we show that alcohol excise taxes are instantly over-shifted by a factor of up to 1.5. Consumers react by switching to less expensive products and increase purchases of low-tax alcoholic beverages, thus all but offsetting any moderate, tax-induced reductions in total ethanol consumption. Our study highlights the importance of tax-induced substitution, the implications of differential tax increases by beverage group and the impacts on public health of alternative types of tax hikes whose main aims are to increase revenue. | |
530 | _aHardcopy version available to institutional subscribers | ||
538 | _aSystem requirements: Adobe [Acrobat] Reader required for PDF files. | ||
538 | _aMode of access: World Wide Web. | ||
588 | 0 | _aPrint version record | |
690 | 7 |
_aI12 - Health Behavior _2Journal of Economic Literature class. |
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690 | 7 |
_aI18 - Government Policy • Regulation • Public Health _2Journal of Economic Literature class. |
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700 | 1 |
_aSaffer, Henry. _919993 |
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700 | 1 |
_aGrossman, Michael. _911927 |
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710 | 2 | _aNational Bureau of Economic Research. | |
830 | 0 |
_aWorking Paper Series (National Bureau of Economic Research) _vno. w27117. |
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856 | 4 | 0 | _uhttps://www.nber.org/papers/w27117 |
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_yAcceso en lĂnea al DOI _uhttp://dx.doi.org/10.3386/w27117 |
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_2ddc _cW-PAPER |
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_c321006 _d279568 |