Professor of Economics Don Dutkowsky and coauthor Ryan Sullivan ’10 PhD (Econ) have won the Public Finance Review’s Outstanding Paper Award of 2012 for “The Effect of Cigarette Taxation on Prices: An Empirical Examination Using Local-level Data.”
The paper contributes important new empirical evidence on the incidence of taxation, focusing on cigarettes. The authors collected tax data from 443 municipalities, combined the data with local-level cigarette price data from the American Chamber of Commerce, and used that information to estimate the impact of city, county, and state excise cigarette taxes on cigarette prices. Importantly, their theoretical and empirical framework allows for the possibility of overshifting.
To see the full paper, click here.