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Consumer behavior in online shopping is affected by sales tax

Einav, Liran, Knoepfle, Dan, Levin, Jonathan and Sundaresan, Neel (2014) Consumer behavior in online shopping is affected by sales tax. LSE American Politics and Policy (14 Jan 2014). Blog Entry.

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Abstract

Profits from the sales tax make up a large percentage of overall revenues in many states, making the estimated $10 billion lost each year to tax-free internet purchases particularly concerning. Liran Einav, Dan Knoepfle, Jonathan Levin, and Neel Sundaresan examine just how much the presence (or lack thereof) of a sales tax influences consumer behavior. He finds that online purchasing goes up by 1-2 percent for each percentage point increase in the state sales tax, and that an online sales tax does lead to a decline in purchases.

Item Type: Online resource (Blog Entry)
Official URL: http://blogs.lse.ac.uk/usappblog/
Additional Information: © 2014 The Authors; Online
Divisions: LSE
Subjects: E History America > E11 America (General)
H Social Sciences > HB Economic Theory
Sets: Collections > LSE American Politics and Policy (USAPP) Blog
Date Deposited: 29 Jul 2014 14:39
Last Modified: 26 Aug 2019 23:19
URI: http://eprints.lse.ac.uk/id/eprint/58453

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