We use Nielsen Homescan data to examine who bears the economic burden of cigarette taxes. We find cigarette taxes are less than fully passed through to consumer prices, suggesting consumers and producers split the excess burden of these taxes. Using information on consumer location, we show the availability of lower-tax goods across state borders creates significant differences in the pass-through rate. Tax avoidance opportunities also have a sizable effect on purchasing behavior by altering consumer search, prices paid and quantities purchased. Finally, we demonstrate that the incidence of cigarette taxes and the border effect varies by household income and education. (JEL D12, H22, H25, H26, H71, L66)

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

We examine the effect of supercenter market share on consumers' food‐at‐home purchasing habits in the United States. We measure healthfulness several different ways to ensure robustness, but all measurements place a greater value on fresh fruits and vegetables and whole grains than on processed foods high in sugar and sodium. We find that from 1998–2006 consumers generally purchased less healthful foods at supercenters than they do at supermarkets. Moreover, a one‐percent increase in the local market share of supercenters results in a decrease in purchase healthfulness for groceries of 0.10 to 0.46 percent. This relationship is statistically significant and robust.

Measurement error, Validation study, Self-reported data, C81, D12,

No abstract