previously used to justify such taxation and, instead, emphasize that neither explicit nor implicit markets and prices for sugar … content can be expected to emerge. Hence, in the absence of any regulation, the sugar content of sugar-sweetened beverages … (SSBs) would be inefficiently high. This market failure can be corrected by a tax on the sugar content per unit of the SSB …

. Our application uses a novel estimation strategy that builds upon the familiar two-stage allocation representation of the …