Tax Sensitivity and Home State Preferences in Internet Purchasing
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...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Article |
| Language: | en_US |
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American Economic Association
2012
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| Online Access: | http://hdl.handle.net/1721.1/73030 https://orcid.org/0000-0003-3164-0855 https://orcid.org/0000-0003-3854-7397 |
| _version_ | 1811076620078809088 |
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| author | Ellison, Glenn Ellison, Sara F. |
| author2 | Massachusetts Institute of Technology. Department of Economics |
| author_facet | Massachusetts Institute of Technology. Department of Economics Ellison, Glenn Ellison, Sara F. |
| author_sort | Ellison, Glenn |
| collection | MIT |
| description | 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. |
| first_indexed | 2024-09-23T10:25:01Z |
| format | Article |
| id | mit-1721.1/73030 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T10:25:01Z |
| publishDate | 2012 |
| publisher | American Economic Association |
| record_format | dspace |
| spelling | mit-1721.1/730302022-09-30T20:57:45Z Tax Sensitivity and Home State Preferences in Internet Purchasing Ellison, Glenn Ellison, Sara F. Massachusetts Institute of Technology. Department of Economics Ellison, Glenn Ellison, Glenn Ellison, Sara F. 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. Center for Advanced Study in the Behavioral Sciences (Stanford, Calif.) Hoover Institution on War, Revolution, and Peace Institute for Advanced Study (Princeton, N.J.) Toulouse Network for Information Technology National Science Foundation (U.S.) (SES-0219205) National Science Foundation (U.S.) (SES-0550897) 2012-09-17T20:43:18Z 2012-09-17T20:43:18Z 2009-08 Article http://purl.org/eprint/type/JournalArticle 1945-774X 1945-7731 http://hdl.handle.net/1721.1/73030 Ellison, Glenn, and Sara Fisher Ellison. "Tax Sensitivity and Home State Preferences in Internet Purchasing." American Economic Journal: Economic Policy, 1(2)(2009): 53–71. © 2009 The American Economic Association. https://orcid.org/0000-0003-3164-0855 https://orcid.org/0000-0003-3854-7397 en_US http://dx.doi.org/10.1257/pol.1.2.53 American Economic Journal: Economic Policy Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. application/pdf American Economic Association American Economic Association |
| spellingShingle | Ellison, Glenn Ellison, Sara F. Tax Sensitivity and Home State Preferences in Internet Purchasing |
| title | Tax Sensitivity and Home State Preferences in Internet Purchasing |
| title_full | Tax Sensitivity and Home State Preferences in Internet Purchasing |
| title_fullStr | Tax Sensitivity and Home State Preferences in Internet Purchasing |
| title_full_unstemmed | Tax Sensitivity and Home State Preferences in Internet Purchasing |
| title_short | Tax Sensitivity and Home State Preferences in Internet Purchasing |
| title_sort | tax sensitivity and home state preferences in internet purchasing |
| url | http://hdl.handle.net/1721.1/73030 https://orcid.org/0000-0003-3164-0855 https://orcid.org/0000-0003-3854-7397 |
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