Tagged: tax incidence

Tax incidence isn’t a subsidy - The Dismal Science

Eric Crampton Jul 03, 2014

Suppose alcohol excise doubled. As you walked down the supermarket aisle, you saw that excise tax pass-through rates varied from product to product: low-cost product prices didn't go up quite as much as you'd expected they would.Does this mean that supermarkets are subsidising lower-priced products? The University of Sheffield / East Anglia alcohol folks think it does.The findings, published … Read More