Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Shaefer says drop child tax credit in favor of universal, direct investment in American children

Buchmueller breaks down partisan views on Obamacare

ISR's Conrad says mobile phone polling faces non-response bias

More News


Gonzalez, Alter, and Dinov win NSF "Big Data Spokes" award for neuroscience network

Post-doc Melanie Wasserman wins dissertation award from Upjohn Institute

ISR kicks off DE&I initiative with lunchtime presentation: Oct 13, noon, 1430 ISR Thompson

U-M ranked #4 in USN&WR's top public universities

More Highlights

Next Brown Bag

Mon, Oct 24 at noon:
Academic innovation & the global public research university, James Hilton

Playing With Fire Cigarettes, Taxes, and Competition from the Internet

Archived Abstract of Former PSC Researcher

Goolsble, A., Michael Lovenheim, and Joel Slemrod. 2010. "Playing With Fire Cigarettes, Taxes, and Competition from the Internet." American Economic Journal: Economic Policy, 2(1): 131-154.

This paper documents the rise of the Internet as a source of state tax-free cigarettes and its impact on taxed sales elasticities Using data on cigarette tax rates, taxable cigarette sales and individual smoking rates by state from 1980 to 2005 merged with data on Internet penetration, this paper documents that there has been a substantial increase in the sensitivity of taxable cigarette sales to state tax rates that is correlated with the rise of Internet usage within states The estimates imply that the increased sensitivity from cigarette smuggling over the Internet has lessened the revenue generating potential of cigarette tax increases significantly, although states are still far from the revenue-maximizing tax rates

DOI:10.1257/pol.2.1.131 (Full Text)

Country of focus: United States of America.

Browse | Search : All Pubs | Next