Replication data for: Sales Taxes and Internet Commerce
- Einav, Liran
- Knoepfle, Dan
- Levin, Jonathan
- Sundaresan, Neel
AbstractWe estimate the sensitivity of Internet retail purchasing to sales taxes using eBay data. Our first approach exploits the fact that a seller's location—and therefore the applicable tax rate—is revealed only after a buyer has expressed interest in an item. We document how adverse tax "surprises" reduce the likelihood of purchase and shift subsequent purchases toward out-of-state sellers. We then use more aggregated data to estimate that every one percentage point increase in a state's sales tax increases online purchases by state residents by almost 2 percent, while decreasing their online purchases from state retailers by 3–4 percent.
Is supplement to
DOI: 10.1257/aer.104.1.1 (Text)
Einav, Liran, Dan Knoepfle, Jonathan Levin, and Neel Sundaresan. “Sales Taxes and Internet Commerce.” American Economic Review 104, no. 1 (January 2014): 1–26. https://doi.org/10.1257/aer.104.1.1.
- ID: 10.1257/aer.104.1.1 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12