Replication data for: Sales Taxes and Internet Commerce

Principal Investigator(s): View help for Principal Investigator(s) Liran Einav; Dan Knoepfle; Jonathan Levin; Neel Sundaresan

Version: View help for Version V1

Name	File Type	Size	Last Modified
ppois			10/11/2019 09:30:PM
README.pdf	application/pdf	11.8 KB	10/11/2019 05:30:PM
common.functions.R	text/plain	1.8 KB	10/11/2019 05:30:PM
cross-section.estimation.do	text/plain	638 bytes	10/11/2019 05:30:PM
cross-section.estimation.functions.do	text/plain	5.5 KB	10/11/2019 05:30:PM
gravity.estimation.R	text/plain	1.1 KB	10/11/2019 05:30:PM
gravity.estimation.do	text/plain	2.6 KB	10/11/2019 05:30:PM
gravity.estimation.functions.R	text/plain	5 KB	10/11/2019 05:30:PM
gravity.estimation.functions.do	text/plain	3.5 KB	10/11/2019 05:30:PM
location-surprise.estimation.R	text/plain	925 bytes	10/11/2019 05:30:PM

Project Description

Summary: We 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.

Scope of Project

JEL Classification:
      H71 State and Local Taxation, Subsidies, and Revenue
      L81 Retail and Wholesale Trade; e-Commerce
      L86 Information and Internet Services; Computer Software

Related Publications

Download this project

Published Versions

V1 [2019-10-11]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.