Chiou, Lesley; Muehlegger, Erich - In: Contributions to Economic Analysis & Policy 8 (2008) 1, pp. 2027-2027
Differences in excise taxes across jurisdictions create incentives for consumers to cross the border and to purchase in lower-tax jurisdictions. This paper introduces a discrete choice model to examine tax avoidance and state border crossing in the market for cigarettes. We exploit a rich...