Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/148102
Authors: 
LoPiccalo, K.
Year of Publication: 
2016
Series/Report no.: 
Working Papers, UC Santa Cruz Economics Department 735
Abstract: 
This paper uses store-level data on consumer liquor revenues and volume sales in Oregon to estimate the effect of state tax differentials on consumer demand. Liquor privatization in Washington led to higher prices from new taxes. I calculate the impact of tax incidence on tax avoidance using variation in store proximity to the Washington-Oregon (WA-OR) border. By calculating driving distances between Oregon liquor stores and border crossings, I find that stores closest to the WA-OR border experienced an additional 20 percent increase in revenues relative to interior stores, and that avoidance behavior dissipates monotonically from the Washington-Oregon state line.
Subjects: 
Tax avoidance
tax incidence
cross-border shopping
alcohol
JEL: 
D40
H20
H21
H22
H26
L10
Document Type: 
Working Paper

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