Crossing the line: Direct estimation of cross-border cigarette sales and the effect on tax revenue

B.E. Journal of Economic Analysis and Policy

Volumn 8, Issue 1, 2008, Pages

  Chiou, Lesley ^a   Muehlegger, Erich ^b  

^a OCCIDENTAL COLLEGE   (United States)

^b HARVARD UNIVERSITY   (United States)

Author keywords

Cross border sales; State cigarette taxation; Tax avoidance

Indexed keywords

EID: 58149401038     PISSN: None     EISSN: 19351682     Source Type: Journal    
DOI: 10.2202/1935-1682.2027     Document Type: Article

References (28)

1. Baltagi, B.H. and R.K. Goel (2000). "Quasi-Experimental Price Elasticity of Liquor Demand in the United States: 1960-83," American Journal of Agricultural Economics, 72, 451-454.
2. Baltagi, B.H. and J.M. Griffin (1995). "A Dynamic Demand Model for Liquor: The Case for Pooling," The Review of Economics and Statistics, 77, 545-553.
3. Beard, T., P. Gant, and R. Saba (1997). "border crossing Sales, Tax Avoidance, and State Tax Policies: An Application to Alcohol," Southern Economic Journal, 64, 293-306.
4. Ben-Akiva, M. and S.R. Lerman (1985). Discrete Choice Analysis, Cambridge, Massachusetts: The MIT Press.
5. Chaloupka, F. and R.L. Pacula (1998). "Limiting Youth Access to Tobacco: The Early Impact of the Synar Amendment on Youth Smoking," University of Illinois at Chicago, Department of Economics, working paper.
6. Chaloupka, F. and K.E. Warner (2000). "The Economics of Smoking," Handbook of Health Economics, Elsevier Science, North Holland.
7. Coats, M. (1995). "A Note on Estimating Cross-Border Effects of State Cigarette Taxes," National Tax Journal, 48, 573-584.
8. Chiou, L. (2008). "Empirical Analysis of Competition between Wal-Mart and Other Retail Channels," Journal of Economics and Management Strategy, forthcoming.
9. Crawford, I. and S. Tanner (1995). "Bringing It All Back Home: Alcohol Taxation and Cross-Border Shopping," Fiscal Studies, 16, 94-114.
10. DeCicca, P., D. Kenkel, A. Mathios, Y. Shin, and Y. Lim (2008). "Youth Smoking, Cigarette Prices, and Anti-smoking Sentiment", Health Economics, 17, 733-749.
11. Doyle, J, and K. Samphantharak (2007). "$2.00 Gas! Studying the Effects of a Gas Tax Moratorium," Journal of Public Economics, forthcoming.
12. Ellison, G. and S.F. Ellison (2007). "Internet Retail Demand: Taxes, Geography, and Online-Offline Competition," Massachusetts Institute of Technology, Department of Economics, working paper.
13. Emery, S., M. White, E. Gilpin, and J. Pierce (2002). "Was There Significant Tax Evasion After the 1999 50 Cent Per Pack Cigarette Tax Increase in California," Tobacco Control, 11, 130-134.
14. Goolsbee, A. (2000). "In a World Without Borders: The Impact of Taxes on Internet Commerce," The Quarterly Journal of Economics, Vol. 115, no. 2, pp. 561-576.
15. Goolsbee, A., M.F. Lovenheim, and J. Slemrod (2007). "Playing with Fire: Cigarettes, Taxes and Competition from the Internet." working paper
16. Gruber, J., A. Sen, and M. Stabile (2003). "Estimating Price Elasticities When There Is Smuggling: The Sensitivity of Smoking to Price In Canada," Journal of Health Economics, 22, 821-842.
17. Hyland, A., J.E. Bauer, Q. Li, S.M. Abrams, C. Higbee, L. Peppone, and K.M. Cummings (2005). "Higher Cigarette Prices Influence Cigarette Purchase Patterns," Tobacco Control, 14, 86-92.
18. Keeler, T., T. Hu, P. Barnett, W. Manning, and H. Sung (1996). "Do cigarette producers price-discriminate by state? An empirical analysis of local cigarette pricing and taxation," Journal of Health Economics, 15, 499-512.
19. Lewit, E.M. and D. Coate (1982). "The Potential for Using Excise Taxes to Reduce Smoking," Journal of Health Economics, 1, 121-145.
20. Lewit, E.M., D. Coate, and M. Grossman (1981). "The Effects of Government Regulation on Teenage Smoking," Journal of Law and Economics, 24, 545-569.
21. Lovenheim, M.F. (2008). "How Far to the Border?: The Extent and Impact of Cross-Border Casual Cigarette Smuggling," National Tax Journal, 61, 7-33.
22. Manuszak, M. and C. Moul (2006). "How Far for a Buck? Tax Differences and the Location of Retail Gasoline Activity in Southeast Chicagoland," Review of Economics and Statistics, forthcoming.
23. Stehr, M. (2005). "Cigarette Tax Avoidance and Evasion," Journal of Health Economics, 24, 277-297.
24. Stehr, M. (2007). "The Effect of Sunday Sales Bans and Excise Taxes on Drinking and Cross Border Shopping for Alcoholic Beverages," National Tax Journal, 60, 85-105.
25. Sung, H., T. Hu, and T. Keeler (1994). "Cigarette Taxation and Demand: An Empirical Model," Contemporary Economic Policy, 12, 91-100.
26. The Tax Burden on Tobacco Historical Compilation (2007), 42, electronic.
27. Thursby, J. and M. Thursby (2000). "Interstate Cigarette Bootlegging: Extent, Revenue Losses, and Effects of Federal Intervention," National Tax Journal, 53 (1), 59-77.
28. Yurekli, A. and P. Zhang (2000), "The Impact of Clean Indoor Air Laws and Cigarette Smuggling on Demand for Cigarettes: An Empirical Model," Health Economics, 9, 159-170.