Taxing food and beverages: Theory, evidence, and policy

Yuqing Zheng; Edward W. McLaughlin; Harry M. Kaiser

doi:10.1093/ajae/aas138

Taxing food and beverages: Theory, evidence, and policy

Yuqing Zheng, Edward W. McLaughlin, Harry M. Kaiser

Research output: Contribution to journal › Article › peer-review

24 Scopus citations

Abstract

We developed a theoretical framework to examine the effect of a change in sales or excise tax on food and beverage demand after considering that consumers may have imperfect tax knowledge, are sometimes inattentive to sales tax, may not be informed of a sales tax change, and pay no sales tax on eligible food or beverages if using food stamps.We conducted simulations to assess how much the sales tax elasticity of demand should be adjusted downward from the price elasticity of demand and quantified the advantage of using an excise tax as an anti-obesity policy.

Original language	English
Pages (from-to)	705-723
Number of pages	19
Journal	American Journal of Agricultural Economics
Volume	95
Issue number	3
DOIs	https://doi.org/10.1093/ajae/aas138
State	Published - Apr 2013

Bibliographical note

Funding Information:
Funding for this research was provided by Cornell University Food Industry Management Program.

Funding

Funding for this research was provided by Cornell University Food Industry Management Program.

Funders	Funder number
Cornell High Energy Synchrotron Source, Cornell University

Keywords

Demand
Excise tax
Food and beverages
Imperfect tax knowledge
Misperception
Sales tax

ASJC Scopus subject areas

Agricultural and Biological Sciences (miscellaneous)
Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1093/ajae/aas138

Cite this

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AB - We developed a theoretical framework to examine the effect of a change in sales or excise tax on food and beverage demand after considering that consumers may have imperfect tax knowledge, are sometimes inattentive to sales tax, may not be informed of a sales tax change, and pay no sales tax on eligible food or beverages if using food stamps.We conducted simulations to assess how much the sales tax elasticity of demand should be adjusted downward from the price elasticity of demand and quantified the advantage of using an excise tax as an anti-obesity policy.

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Taxing food and beverages: Theory, evidence, and policy

Abstract

Bibliographical note

Funding

Keywords

ASJC Scopus subject areas

UN SDGs

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