Difference in state cigarette excise tax rates: a look into the prominence of tax avoidance behavior

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dc.contributor.author Nicholson, Andrew Gale
dc.date.accessioned 2012-11-28T17:05:35Z
dc.date.available 2012-11-28T17:05:35Z
dc.date.issued 2012-11-28
dc.identifier.uri http://hdl.handle.net/2097/15100
dc.description.abstract I analyze the impact of differences in the cigarette excise tax rates of bordering states on the price elasticity of demand for cigarettes in the home state. Using unique county-level data on the sales tax revenues collected from Kansas tobacco sellers by industry type provided by the Kansas Department of Revenue, as well as data on cigarette excise tax rates, distance to Kansas’ borders, and the combined state and county sales tax rate, I examine the determinants of tobacco sales tax revenue using a fixed effects model. The analysis allows me to infer cigarette demand effects, and I find that the price elasticity of demand for cigarettes in Kansas becomes significantly more elastic closer to a low tax border. Model estimates for gas stations with convenience stores and tobacco retailers suggest that a Kansas cigarette excise tax decrease would result in more sales tax revenue on average for counties within 50 miles of a low tax Kansas border, ceteris paribus. en_US
dc.language.iso en_US en_US
dc.publisher Kansas State University en
dc.subject Cigarette en_US
dc.subject Tax en_US
dc.subject Excise en_US
dc.subject Avoidance en_US
dc.subject Border en_US
dc.subject Behavior en_US
dc.title Difference in state cigarette excise tax rates: a look into the prominence of tax avoidance behavior en_US
dc.type Thesis en_US
dc.description.degree Master of Arts en_US
dc.description.level Masters en_US
dc.description.department Department of Economics en_US
dc.description.advisor Tracy Turner en_US
dc.subject.umi Economics, Finance (0508) en_US
dc.date.published 2012 en_US
dc.date.graduationmonth December en_US


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