Vertical externalities in tax setting: evidence from gasoline and cigarettes

• 成果类型: Article
• 署名作者: Besley, TJ; Rosen, HS
• 署名单位: University of London; London School Economics & Political Science; Princeton University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(98)00041-3
• 发表日期: 1998
• 页码: 383-398
• 关键词: cigarette taxes; gasoline taxes

摘要

A common feature of federal systems is that tax bases are joint property. Consequently, state and federal tax setting decisions are interdependent. Our aim here is to put forward a rudimentary theoretical analysis of this phenomenon, and to use the theory as a framework for econometrically estimating the magnitude of the responses. We find that when the federal government increases taxes, there is a significant positive response of state taxes. For example, a 10-cent per gallon increase in the federal tax rate on gasoline leads to a 3.2-cent increase in the state tax rate. (C) 1998 Elsevier Science S.A. All rights reserved.