The pass-through of the largest tax on sugar-sweetened beverages: the case of Boulder, Colorado

John H. Cawley; Chelsea Crain; David E Frisvold; David Jones

doi:10.3386/w25050

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The pass-through of the largest tax on sugar-sweetened beverages: the case of Boulder, Colorado

Working paper

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The pass-through of the largest tax on sugar-sweetened beverages: the case of Boulder, Colorado

John H. Cawley, Chelsea Crain, David E Frisvold and David Jones

NBER working paper series, Vol.25050

National Bureau of Economic Research

09/2018

DOI: 10.3386/w25050

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Abstract

We estimate the incidence of a relatively new type of excise tax, a tax on sugar-sweetened beverages (SSBs). We examine the largest such tax to date, which is two cents per ounce, in Boulder, CO. Using data that were hand-collected from stores and restaurants in both Boulder and two control communities, as well as internet data of restaurant menus, we find that the tax was largely, but not completely, passed through to consumers 5-7 weeks after implementation. Some retailers add the tax only at the register, indicating that estimates solely from posted prices would result in an underestimate of pass-through

Consumer Behavior

Economics

Carbonated beverages

Management

Prices

Soft drinks

Taxation

Details

Title: Subtitle: The pass-through of the largest tax on sugar-sweetened beverages: the case of Boulder, Colorado
Creators: John H. Cawley
Chelsea Crain
David E Frisvold
David Jones
Resource Type: Working paper
Publication Details: NBER working paper series, Vol.25050
DOI: 10.3386/w25050
Publisher: National Bureau of Economic Research; Cambridge, Massachusetts
Number of pages: 35 pages
Language: English
Date posted: 09/2018
Academic Unit: Economics; Public Policy Center (Archive)
Record Identifier: 9984318341902771

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