OLIGOPOLY STRUCTURE AND THE INCIDENCE OF CIGARETTE EXCISE TAXES

• 成果类型: Article
• 署名作者: BARNETT, PG; KEELER, TE; HU, TW
• 署名单位: University of California System; University of California Berkeley
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/0047-2727(95)80006-U
• 发表日期: 1995
• 页码: 457-470
• 关键词: cigarettes; taxation; oligopoly

摘要

A model of oligopoly price behavior and tax incidence for the U.S. cigarette industry for the period 1955-1990 is presented. A cost function is estimated, and shows manufacture to be subject to increasing returns to scale. The mean price elasticity of demand is -0.71. The model indicates that competition among manufacturers has been decreasing since 1980. A simulation shows that an increase in the federal excise tax causes a greater increase in price, and a greater decrease in consumption, than does the same increase in the average of state and local tax rates.