Gasoline Taxes and Consumer Behavior

@article{Li2012GasolineTA,
  title={Gasoline Taxes and Consumer Behavior},
  author={Shanjun Li and Joshua Linn and E. Muehlegger},
  journal={Public Economics: Fiscal Policies \& Behavior of Economic Agents eJournal},
  year={2012}
}
Gasoline taxes can be employed to correct externalities from automobile use and to raise government revenue. Our understanding of the optimal gasoline tax and the efficacy of existing taxes is largely based on empirical analysis of consumer responses to gasoline price changes. In this paper, we directly examine how gasoline taxes affect gasoline consumption as distinct from tax-inclusive retail gasoline prices. We find robust evidence that consumers respond more strongly to gasoline tax changes… Expand
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