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Traditional least squares estimates of the responsiveness of gasoline consumption to changes in gasoline prices are … biased toward zero, given the endogeneity of gasoline prices. A seemingly natural solution to this problem is to instrument … for gasoline prices using gasoline taxes, but this approach tends to yield implausibly large price elasticities. We …
Persistent link: https://www.econbiz.de/10012457686
Claims of the regressivity of gasoline taxes typically rely on annual surveys of consumer income and expenditures which … show that gasoline expenditures are a larger fraction of income for very low income households than for middle or high … income. It uses data from the Consumer Expenditure Survey to reassess the claim that gasoline taxes are regressive by …
Persistent link: https://www.econbiz.de/10012475442
Analyses of policies to reduce gasoline consumption have focused on two effects, a compositional effect on the fuel …
Persistent link: https://www.econbiz.de/10012455697
The dramatic increase in gasoline prices from close to $1 in 1999 to $4 at their peak in 2008 made it much more … expensive for consumers to operate an automobile. In this paper we investigate whether consumers have adjusted to gasoline price … car markets. We find that a $1 increase in gasoline price changes the market shares of the most and least fuel …
Persistent link: https://www.econbiz.de/10012463059
Understanding the sensitivity of gasoline demand to changes in prices and income has important implications for … income elasticities of gasoline demand in the United States have been studied extensively, the vast majority of these studies … the past several decades have changed the responsiveness of U.S. consumers to changes in gasoline prices. In this paper …
Persistent link: https://www.econbiz.de/10012466135
Daily city-level expenditures and prices are used to estimate the price responsiveness of gasoline demand in the U ….S. Using a frequency of purchase model that explicitly acknowledges the distinction between gasoline demand and gasoline …
Persistent link: https://www.econbiz.de/10012456331
Taxation of cigarettes and alcohol can raise revenue and reduce consumption of goods with negative external effects. Despite medical and psychological evidence linking their consumption, little previous work has investigated the significance of cross-price effects in cigarette and alcohol...
Persistent link: https://www.econbiz.de/10012471201
A central parameter for evaluating tax policies is the price elasticity of demand for cigarettes. But in many countries this parameter is difficult to estimate reliably due to widespread smuggling, which significantly biases estimates using legal sales data. An excellent example is Canada, where...
Persistent link: https://www.econbiz.de/10012469752
The FDA is considering using its regulatory authority over the tobacco industry to promote public health by restricting the advertising of menthol cigarettes. In this paper we contribute new empirical evidence on the effects of magazine advertisements for menthol cigarettes on cigarette demand....
Persistent link: https://www.econbiz.de/10012456881
, buy a smaller car with better gas mileage, use cleaner gasoline, and repair pollution control equipment (PCE). However … efficiency can again be obtained, but only if each person's gasoline tax rate can be made to depend on the characteristics of the … characterize second-best tax rates on gasoline and on characteristics …
Persistent link: https://www.econbiz.de/10012471742