dc.contributor.author | Chetty, Raj | |
dc.contributor.author | Looney, Adam | |
dc.contributor.author | Kroft, Kory | |
dc.date.accessioned | 2012-10-16T14:36:26Z | |
dc.date.issued | 2009 | |
dc.identifier.citation | Chetty, Raj, Adam Looney, and Kory Kroft. 2009. Salience and taxation: theory and evidence. American Economic Review 99(4): 1145–1177. | en_US |
dc.identifier.issn | 0002-8282 | en_US |
dc.identifier.uri | http://nrs.harvard.edu/urn-3:HUL.InstRepos:9748525 | |
dc.description.abstract | Using two strategies, we show that consumers underreact to taxes that are not salient. First, using a field experiment in a grocery store, we find that posting tax-inclusive price tags reduces demand by 8 percent. Second, increases in taxes included in posted prices reduce alcohol consumption more than increases in taxes applied at the register. We develop a theoretical framework for applied welfare analysis that accommodates salience effects and other optimization failures. The simple formulas we derive imply that the economic incidence of a tax depends on its statutory incidence, and that even policies that induce no change in behavior can create efficiency losses. | en_US |
dc.description.sponsorship | Economics | en_US |
dc.language.iso | en_US | en_US |
dc.publisher | The American Economic Association | en_US |
dc.relation.isversionof | doi:10.1257/aer.99.4.1145 | en_US |
dc.relation.hasversion | http://www.nber.org/papers/w13330 | en_US |
dc.relation.hasversion | http://www.economics.harvard.edu/app/webroot/files/faculty/1238_taxsalience_nber.pdf | en_US |
dash.license | OAP | |
dc.subject | economics | en_US |
dc.subject | elasticity | en_US |
dc.subject | income | en_US |
dc.title | Salience and Taxation: Theory and Evidence | en_US |
dc.type | Journal Article | en_US |
dc.description.version | Author's Original | en_US |
dc.relation.journal | American Economic Review | en_US |
dash.depositing.author | Chetty, Raj | |
dc.date.available | 2012-10-16T14:36:26Z | |
dc.identifier.doi | 10.1257/aer.99.4.1145 | * |
dash.contributor.affiliated | Chetty, Raj | |