Besley, Timothy 
ORCID: 0000-0002-8923-6372 and Rosen, Harvey
(1999)
Sales taxes and prices: an empirical analysis.
National Tax Journal, 52 (2).
157 - 178.
ISSN 0028-0283
Abstract
We employ a unique data source to examine the incidence of sales taxes. The main idea is to take information on the prices of specific commodities in different U.S. cities and to examine the extent to which differences in tax rates and bases are reflected in prices, controlling for other factors (such as costs). We find a surprising variety of shifting patterns. For some commodities, the after-tax price increases by exactly the amount of the tax, a result consistent with the standard competitive model. However, taxes on other commodities are overshifted--an increase in tax revenueof one dollar per unit increases the price by more than one dollar.
| Item Type: | Article |
|---|---|
| Official URL: | http://ntj.tax.org/ |
| Additional Information: | © 1999 National Tax Journal |
| Divisions: | LSE |
| Subjects: | H Social Sciences > HB Economic Theory |
| Date Deposited: | 27 Apr 2007 |
| Last Modified: | 11 Nov 2024 01:54 |
| URI: | http://eprints.lse.ac.uk/id/eprint/1437 |
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