Share
Finance and Economics Discussion Series: Salience and Taxation: Theory and Evidence (in English)
United States Federal Reserve Board
(Author)
·
Raj Chetty
(Author)
·
Bibliogov
· Paperback
Finance and Economics Discussion Series: Salience and Taxation: Theory and Evidence (in English) - United States Federal Reserve Board ; Et Al ; Chetty, Raj
$ 14.95
$ 17.75
You save: $ 2.80
Choose the list to add your product or create one New List
✓ Product added successfully to the Wishlist.
Go to My WishlistsIt will be shipped from our warehouse between
Monday, July 15 and
Tuesday, July 16.
You will receive it anywhere in United States between 1 and 3 business days after shipment.
Synopsis "Finance and Economics Discussion Series: Salience and Taxation: Theory and Evidence (in English)"
This paper presents evidence that consumers underreact to taxes that are not salient and characterizes the welfare consequences of tax policies when agents make such optimization errors. The empirical evidence is based on two complementary strategies. First, we conducted an experiment at a grocery store posting tax inclusive prices for 750 products subject to sales tax for a three week period. Scanner data show that this intervention reduced demand for the treated products by 8 percent. Second, we find that state-level increases in excise taxes (which are included in posted prices) reduce alcohol consumption significantly more than increases in sales taxes (which are added at the register and are hence less salient). We develop simple, empirically implementable formulas for the incidence and efficiency costs of taxation that account for salience effects as well as other optimization errors. Contrary to conventional wisdom, the formulas imply that the economic incidence of a tax depends on its statutory incidence and that a tax can create deadweight loss even if it induces no change in demand. Our method of welfare analysis yields robust results because it does not require specification of a positive theory for why agents fail to optimize with respect to tax policies.
- 0% (0)
- 0% (0)
- 0% (0)
- 0% (0)
- 0% (0)
All books in our catalog are Original.
The book is written in English.
The binding of this edition is Paperback.
✓ Producto agregado correctamente al carro, Ir a Pagar.
