Tax Incidence when quality matters: Evidence from the beer market

Journal of Agricultural and Food Industrial Organization

Volumn 9, Issue 1, 2011, Pages

  Rojas, Christian ^a   Shi, Tianji ^b  

^a UNIVERSITY OF MASSACHUSETTS   (United States)

^b UNIVERSITY OF BRITISH COLUMBIA   (Canada)

Author keywords

beer industry; differentiated products; excise tax; quality

Indexed keywords

EID: 84855390305     PISSN: None     EISSN: 15420485     Source Type: Journal    
DOI: 10.2202/1542-0485.1353     Document Type: Article

References (34)

1. Ailawadi, K., D. Lehmann, and S. Neslin. "Revenue Premium as an Outcome Measure of Brand Equity." Journal of Marketing 67(2003): 1-17. (Pubitemid 37353105)
2. Anderson, S., A. de Palma, and B. Kreider. "Tax Incidence in Differentiated Product Oligopoly." Journal of Public Economics 81(2001): 173-92. (Pubitemid 33626334)
3. Alchian, A., and W. Allen. University Economics. Belmont, CA: Wadsworth. Publishing Company, 1964.
4. Barzel, Y. "An Alternative Approach to Analysis of Taxation." Journal of Political Economy 84(1976): 1177-97.
5. Berry, S. "Estimating Discrete-Choice Models of Product Differentiation." RAND Journal of Economics 25(1994): 242-62.
6. Bertonazzi, E., M. Maloney, and R. McCormick. "Some Evidence on the Alchian and Allen Theorem: The Third Law of Demand?" Economic Inquiry 31(1993): 383-93.
7. Borcherding, T., and E. Silberberg. "Shipping the Good Apple Out: The Alchian and Allen Theorem Reconsidered." Journal of Political Economy 86(1978): 131-38.
8. Beer Institute. Brewers Almanac, 2007. Available at: http://www. beerinstitute.org/
9. Chesson, H., P. Harrison and W. Kassler. "Sex Under the Influence: The Effect of Alcohol Policy on Sexually Transmitted Disease Rates in the United States." Journal of Law and Economics 43(2000): 215-38.
10. Conley, T. "GMM Estimation with Cross Sectional Dependence." Journal of Econometrics 92(1999): 1-45. (Pubitemid 129593206)
11. Deaton, A., and J. Muellbauer. "An Almost Ideal Demand System." American Economic Review 70(1980): 312-26.
12. DiNardo, J., and T. Lemieux. "Alcohol, Marijuana, and American Youth: The Unintended Consequences of Government Regulation." Journal of Health Economics 20(2001): 991-1010. (Pubitemid 33010785)
13. Draganska, M., M. Mazzeo and K. Seim. "Beyond Plain Vanilla: Modeling Joint Product Assortments and Pricing Decisions." Quantitative Marketing and Economics 7(2009): 105-46.
14. Driscoll, J. and A. Kraay. "Consistent Covariance Matrix Estimation with Spatially Dependent Panel Data." Review of Economics and Statistics 80(1998): 549-60.
15. Evans, W., and M. Farrelly. "The Compensating Behavior of Smokers: Taxes, Tar, and Nicotine." RAND Journal of Economics 29(1998): 578-95. (Pubitemid 128350741)
16. Feenstra, R. "Quality Change under Trade Restraint in Japanese Autos." Quarterly Journal of Economics 103(1988): 131-46.
17. Goldfarb, A., Q. Lu, and S. Moorthy. "Measuring Brand Value in an Equilibrium Framework." Marketing Science 28(2009): 69-86.
18. Gould, J., and J. Segall. "The Substitution Effects of Transportation Costs." Journal of Political Economy 77(1968): 130-37.
19. Hummels, D., and A. Skiba. "Shipping the Good Apples Out: An Empirical Confirmation of the Alchian-Allen Conjecture." Journal of Political Economy 112(2004): 1384-1402. (Pubitemid 40106867)
20. Johnson, T. "Additional Evidence of the Effects of Alternative Taxes on Cigarette Prices." Journal of Political Economy 86(1978): 325-28.
21. Leffler, K. "Ambiguous Change in Product Quality." American Economic Review 72 (1982): 956-67.
22. Markowitz, S. and M. Grossman. "Alcohol regulation and domestic violence towards children." Contemporary Economic Policy 16(1998): 309-320.
23. MMR-Research. Beverages: Citrus, Sports, Lite Are Hot. Vol. 15, issue 7, 1998.
24. Nevo, A. "Measuring Market Power in the Ready-to-Eat Cereal Industry." Econometrica 69(2001): 307-42. (Pubitemid 33645351)
25. Newey, W., and K. West. "A Simple Positive Semi-Definite, Heteroskedasticity and Autocorrelation Consistent Covariance Matrix Estimator" Econometrica 55(1987): 703-08.
26. Pinkse, J., M. Slade and C. Brett. "Spatial Price Competition: A Semiparametric Approach." Econometrica 70 (2002): 1111-55.
27. Rojas, C. Demand Estimation with Differentiated Products: An Application to Price Competition in the U.S. Brewing Industry. Ph.D. Dissertation, Virginia Tech, 2005.
28. Rojas, C. "Price Competition in U.S. Brewing." Journal of Industrial Economics 56 (2008): 1-31.
29. Rojas, C., and E. Peterson. "Demand for Differentiated Products: Price and Advertising Evidence from the U.S. Beer Market." International Journal of Industrial Organization 26(2008): 288-307. (Pubitemid 350266861)
30. Ruhm, C. "Alcohol policies and highway vehicle fatalities." Journal of Health Economics 15(1996): 435-454. (Pubitemid 26420902)
31. Sobel, R., and T. Garrett. "Taxation and Product Quality: New Evidence from Generic Cigarettes." Journal of Political Economy 105(1997): 880-87. (Pubitemid 127614731)
32. Sriram, S., S. Balachander, and M. Kalwani. "Monitoring the Dynamics of Brand Equity Using Store-Level Data." Journal of Marketing 71(2007): 61-78.
33. Sumner, M., and R. Ward. "Tax Changes and Cigarette Prices." Journal of Political Economy 89(1981): 1261-65.
34. U.S. Department of Agriculture. Grain Transportation Reports, various years, available at http://www.ams.usda.gov/tmdtsb/grain/Archive.htm.