000			01241nam a22001577a 4500
999			_c516229 _d516229
008			210220b ||||| |||| 00| 0 eng d
100			_aConlon, Christopher T. and Rao, Nirupama L. _924264
245			_aDiscrete prices and the incidence and efficiency of excise taxes
260			_aAmerican Economic Journal: Economic Policy
300			_a12(4), Nov, 2020: p.111-143
520			_aThis paper uses UPC-level data to examine the relationship between excise taxes, retail prices, and consumer welfare in the distilled spirits market. We document a nominal rigidity in retail prices that arises because firms largely choose prices that end in 99 cents and change prices in whole-dollar increments. A correctly specified model, like an ordered logit, takes this discreteness into account when predicting the effects of alternative taxes. Explicitly accounting for price points substantially impacts estimates of tax incidence and the excess burden cost of tax revenue. Meaningful nonmonotonicities in these quantities expand the potential considerations in setting excise taxes. – Reproduced
650			_aTaxation and subsidies _924265
773			_aAmerican Economic Journal: Economic Policy
906			_aTAXATION
942			_cAR