Price Isn’t Everything: Behavioral Response Around Changes In Sin Taxes

In traditional economic models, taxes change behavior by changing prices. empirical analyses, factors other than price are thought to be relevant, but any nonprice usually assumed held constant as vary. We contend that violations of this assumption expected when laws passed sin taxes. support claim, we document state-level cigarette tax increases concomitant with in antismoking appropriations, media coverage on smoking, lobbying efforts, and place-based smoking restrictions. The influence these is easily confused effects, find evidence suggesting controlling for them substantially reduces the estimated demand responsivity itself.