Do Taxes Produce Better Wine?
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Do Taxes Produce Better Wine? / Ljunge, Jan Martin.
I: Journal of Agricultural & Food Industrial Organization, Bind 9, Nr. 1, 2011, s. Article 12.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Do Taxes Produce Better Wine?
AU - Ljunge, Jan Martin
PY - 2011
Y1 - 2011
N2 - Theory predicts that unit taxes increase the quality consumed in a market, since unit taxes reduce the relative price of high quality goods. Ad valorem taxes, on the other hand, have no effect on relative prices, and should not affect product quality. The hypothesis is tested empirically in the US wine market. I find that the market share of high quality wine is significantly increased by unit taxes, and that there is no significant effect of ad valorem taxes, in accordance with the hypothesis and previous empirical studies.
AB - Theory predicts that unit taxes increase the quality consumed in a market, since unit taxes reduce the relative price of high quality goods. Ad valorem taxes, on the other hand, have no effect on relative prices, and should not affect product quality. The hypothesis is tested empirically in the US wine market. I find that the market share of high quality wine is significantly increased by unit taxes, and that there is no significant effect of ad valorem taxes, in accordance with the hypothesis and previous empirical studies.
U2 - 10.2202/1542-0485.1359
DO - 10.2202/1542-0485.1359
M3 - Journal article
VL - 9
SP - Article 12
JO - Journal of Agricultural and Food Industrial Organization
JF - Journal of Agricultural and Food Industrial Organization
SN - 1542-0485
IS - 1
ER -
ID: 36063611