Marion, Justin; Muehlegger, Erich - Kennedy School of Government, Harvard University - 2010
In this paper, we provide new evidence regarding the pass-through of diesel and gasoline taxes to prices, and how the …, which complicate the supply chain by increasing product heterogeneity. We find that state gasoline and diesel taxes are on … average fully passed on to consumers. We also find that the pass-through of diesel taxes is greater in settings where untaxed …