In this report, I estimate the revenue that could be generated by increasing Illinois sin taxes on cigarettes, alcohol, and gambling. I discuss the efficiency and distributional effects of those taxes, as well as potential savings from a reduction in cigarette and alcohol consumption

While conducting empirical work, researchers sometimes observe changes in outcomes before adoption of a new treatment program. The conventional diagnosis is that treatment is endogenous. Observing changes in outcomes prior to treatment is also consistent, however, with anticipation effects. This...

The current fiscal crisis in Illinois affects all parts of the state’s budget. Infrastructure is no exception. For many years Illinois has spent more on highways than it has collected in highway-related revenue. One solution to this problem is to increase the state’s gasoline tax. This...

Illinois needs to prepare now for the coming changes associated with climate change, according to IGPA's Climate Change Policy Initiative. A new report, "Preparing for climate change in Illinois: An overview of expected impacts" (PDF), calls for a state-wide climate action plan to manage the...

This policy brief provides an overview of research on climate change and air pollution, and it discusses the implications for Illinois. The researchers first describe the effects of pollution and then look at trends in Illinois relative to the whole United States. They then describe estimates of...

This report estimates the revenue and distributional effects of increasing the state’s cigarette excise tax by $0.50 per pack from $1.98 to $2.48. After taking into account the behavioral responses of smokers, Reif estimates that the tax increase would raise up to $175 million per year and...

Although crop insurance was not designed to impact water resources, it may have unintended consequences for water use, because agriculture and water resources are tightly linked. In particular, crop production relies on water as an input, and irrigation for crop production is the largest user of...

We analyze the value of insurance when individuals have access to credit markets. Loans allow consumers to smooth financial shocks over time, decreasing the value of consumption smoothing from insurance. We derive formulas for the value of insurance that can be taken to data, and show how that...