Signaling through taxing America’s sin: a panel data study
2014 (English)Report (Other academic)
This article aims to examine how sin taxation changes long-term consumer behavior regarding commodities which are deemed harmful for both health and the environment. These include tobacco, alcoholic beverages, sugar and confectionary, household energy, and motor fuel. Specifically, we examine the signaling effect from taxation which is seen if a tax increase leads to a significantly larger change in consumption than a producer price change. The empirical analysis is conducted by a US panel data study, during the period 1988-2012 for the four US census regions, using the Almost Ideal Demand System (AIDS). We find the main result to be that the signaling effect from taxation is significant for tobacco as well as for electricity and motor fuel.
Place, publisher, year, edition, pages
2014. , 27 p.
Umeå economic studies, ISSN 0348-1018 ; 894
, CERE Working paper, 2014:4
taxation, signaling, public policy, regulation, legislation, almost ideal demand system, panel data
Research subject Economics
IdentifiersURN: urn:nbn:se:umu:diva-93346ISBN: 978-91-7601-126-3OAI: oai:DiVA.org:umu-93346DiVA: diva2:747895
This article is the second of three articles included in the doctoral thesis, "State and Industrial Actions to Influence Consumer Behavior".2014-09-172014-09-172014-09-19Bibliographically approved