Einav, Liran; Knoepfle, Dan; Levin, Jonathan; … - In: American Economic Review 104 (2014) 1, pp. 1-26
We estimate the sensitivity of Internet retail purchasing to sales taxes using eBay data. Our first approach exploits the fact that a seller's location?and therefore the applicable tax rate?is revealed only after a buyer has expressed interest in an item. We document how adverse tax "surprises"...