Goodhue, Rachael E.; LaFrance, Jeffrey T.; Simon, Leo K. - In: Journal of Wine Economics 4 (2009) 01, pp. 27-45
We consider the impact of taxes on the quantity and quality produced by a competitive firm of goods, such as wine, for which market value accrues with age. Our analysis found the following: an increase in the volumetric retail tax collected at sale increases quality, so that the basic...