Playing with Fire : Cigarettes , Taxes and Competition from the Internet

  • Austan Goolsbee
  • Published 2008

Abstract

This paper documents the rise of the Internet as a source of cigarette tax competition for states in the United States. Using data on cigarette tax rates, taxable cigarette sales and individual smoking rates by state from 1980 to 2005 merged with data on Internet penetration, the paper documents that there has been a substantial increase in the sensitivity… (More)

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