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035    (NBER)w12266
035    (CKB)5410000000076215
035    (EXLCZ)995410000000076215
040    MaCbNBER |beng |cMaCbNBER
084    H2 |2jelc
100 1  Doyle, Joseph J, Jr.
245 10 $2.00 Gas! Studying the Effects of a Gas Tax Moratorium / |cJoseph J. Doyle, Jr., Krislert Samphantharak.
260    Cambridge, Mass. |bNational Bureau of Economic Research |c2006.
300    1 online resource: |billustrations (black and white);
490 1  NBER working paper series |vno. w12266
588 0  Print version record
520 3  There are surprisingly few estimates of the effect of sales taxes on retail prices, especially at the firm level. Further, along both sides of a state border, a change in one state's sales tax can shed light on the nature of competition, as a subset of firms effectively experiences a change in its marginal cost. This paper considers the suspension, and subsequent reinstatement, of the 5% gasoline sales tax in Illinois and Indiana following a temporary price spike in the spring of 2000. Earlier laws set the timing of the reinstatements, providing plausibly exogenous changes in the tax rates. Using a unique dataset of daily, gas station-level data, retail gas prices are found to drop by 3% following the suspension, and increase by 4% following the reinstatements. After linking the stations to driving distance data, some evidence suggests that the tax increases are associated with higher prices up to an hour's drive into neighboring states.
500    May 2006.
650  7 Taxation, Subsidies, and Revenue |2jelc
710 2  National Bureau of Economic Research.
700 1  Samphantharak, Krislert.
830  0 Working Paper Series (National Bureau of Economic Research) |vno. w12266.
906    BOOK