Do Taxes Produce Better Wine?

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Do Taxes Produce Better Wine? / Ljunge, Jan Martin.

Department of Economics, University of Copenhagen, 2011.

Research output: Working paper › Research

Harvard

Ljunge, JM 2011 'Do Taxes Produce Better Wine?' Department of Economics, University of Copenhagen. <https://www.econ.ku.dk/english/research/publications/wp/dp_2011/1128.pdf/>

APA

Ljunge, J. M. (2011). Do Taxes Produce Better Wine? Department of Economics, University of Copenhagen. https://www.econ.ku.dk/english/research/publications/wp/dp_2011/1128.pdf/

Vancouver

Ljunge JM. Do Taxes Produce Better Wine? Department of Economics, University of Copenhagen. 2011.

Author

Ljunge, Jan Martin. / Do Taxes Produce Better Wine?. Department of Economics, University of Copenhagen, 2011.

Bibtex

@techreport{48e8e160cca2406caece8d935de4e623,
title = "Do Taxes Produce Better Wine?",
abstract = "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.",
keywords = "Faculty of Social Sciences, Quality Choice, Tax Distortion, unit taxes",
author = "Ljunge, {Jan Martin}",
note = "JEL classification: D12, H31",
year = "2011",
language = "English",
publisher = "Department of Economics, University of Copenhagen",
address = "Denmark",
type = "WorkingPaper",
institution = "Department of Economics, University of Copenhagen",

}

RIS

TY - UNPB

T1 - Do Taxes Produce Better Wine?

AU - Ljunge, Jan Martin

N1 - JEL classification: D12, H31

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.

KW - Faculty of Social Sciences

KW - Quality Choice

KW - Tax Distortion

KW - unit taxes

M3 - Working paper

BT - Do Taxes Produce Better Wine?

PB - Department of Economics, University of Copenhagen

ER -

ID: 35372869