The Micro-Geography of Tax Avoidance: Evidence from Littered Cigarette Packs in Chicago

• 成果类型: Article
• 署名作者: Merriman, David
• 署名单位: University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.2.2.61
• 发表日期: 2010
• 页码: 61-84
• 关键词: border

摘要

The large lax differentials between Chicago and neighboring jurisdictions provide an incentive for cigarette tax avoidance. Data from a random sample of cigarette packs littered in Chicago reveals a startling degree of tax avoidance: three-quarters did not display a Chicago tax stamp. Also, the $2.68 difference between the tax in Chicago ad surrounding counties decreases the probability of a local stamp by almost 60 percent, and a one mile increase in distance to the lower-tax state border increases the probability a pack of a local :lamp by about one percent. These results are consistent with the predictions of economic theory. (JEL H25, H26, H71)