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Ellison, Glenn, and
Sara Fisher Ellison. 2009. "Tax Sensitivity and Home State Preferences in Internet Purchasing."
,
1(2): 53-71.
Show Article Details
DOI: 10.1257/pol.1.2.53
Abstract:Data on memory modules sales are used to explore aspects of e-retail
demand. Aggregate sales are examined in state-level regressions.
Discrete choice techniques are used to examine (incomplete) hourly
sales data from a price comparison site. We find a strong relationship
between e-retail sales to a given state and sales tax rates that apply
to purchases from offline retailers, suggesting substantial online-offline
substitution and the importance of tax avoidance motives.
Geography matters in two ways: consumers prefer purchasing from
firms in nearby states and appear to have a separate preference for
buying from in-state firms. (JEL D12, H25, H71, L81)
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Authors:
Ellison, Glenn (MIT)
Ellison, Sara Fisher (MIT)
JEL Classifications:
D12: Consumer Economics: Empirical Analysis
H25: Business Taxes and Subsidies including sales and value-added (VAT)
H71: State and Local Taxation, Subsidies, and Revenue
L81: Retail and Wholesale Trade; e-Commerce
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