The Demand for Cigarette Smuggling
When taxes raise the full price of a good above that in nearby jurisdictions, consumers have an incentive to cross into the lower-price jurisdiction to make purchases. Using a simple microeconomic model of the consumer's border-crossing decision, the authors derive an econometric model to test the significance of border crossing and estimate the magnitude of the resulting sales. Examining cigarette sales in the continental United States over the period 1960 to 1986, they find strong evidence that border crossing is a significant factor in explaining sales differentials between states. Implications for demand estimation and excise tax policy are discussed. Coauthors are T. Randolph Beard; Robert B. Ekelund, Jr.; and Rand W. Ressler. Copyright 1995 by Oxford University Press.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 33 (1995)
Issue (Month): 2 (April)
|Contact details of provider:|| Postal: |
Fax: 01865 267 985
Web page: http://ei.oupjournals.org/
More information through EDIRC
|Order Information:||Web: http://www.oup.co.uk/journals|
When requesting a correction, please mention this item's handle: RePEc:oup:ecinqu:v:33:y:1995:i:2:p:189-202. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.