Feldman, Naomi E.; Ruffle, Bradley J. - In: American Economic Journal: Economic Policy 7 (2015) 1, pp. 95-118
We test the equivalence of tax-inclusive, tax-exclusive and tax-rebate prices through a series of experiments differing only in their handling of the tax. Subjects receive a cash budget and decide how much to keep and how much to spend on various attractively priced goods. Subjects spend...