Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/210639
Authors: 
Nelson, Jon Paul
Year of Publication: 
2020
Series/Report no.: 
Economics Discussion Papers 2020-1
Abstract: 
This paper compares two methods for meta-analysis: fixed-effect models and random- effects models. Both models are applied to pass-through rates of excise taxes on alcohol beverages. Using a sample of estimates from 30 primary studies, weighted means are first reported for each method and compared against a fully- passed tax or rate of unity. Dispersion and heterogeneity statistics are used to assess the performance of each method. Second, means and dispersion statistics are reported by subgroups for country source; beverage (beer, wine-spirits); and published status. Third, tests are conducted forpublication selection bias using funnel plots and regression asymmetry tests. Fourth, threeprocedures are undertaken to reduce selection bias: trim-and-fill; cumulative meta-analysis; and meta-regressions. Based on a variety of tests and procedures, three conclusions arereached. First, a random-effects model is more appropriate for these data, reflecting diverse estimates of pass-through rates. Second, pass-through rates are approximately unity regardless of beverage. Third, greater attention needs to be given to choice of model for meta-analysis in economics.
Subjects: 
meta-analysis
fixed-effects
random-effects
publication bias
excise taxes
pass-through rate
alcohol
JEL: 
C18
C52
H21
H22
I18
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Working Paper

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