Document Type
Article
Publication Date
5-2009
Abstract
This article examines the effect of state level corruption on state beer taxes in the United States. Our lobby group model predicts that corruption reduces the beer tax, but this effect is conditional on the level of alcohol-related vehicle deaths. Using a panel of state level data from 1982 to 2001, we find that increased corruption is associated with lower state beer tax rates. The magnitude of the effect, however, declines with increases in alcohol-related traffic deaths. Our findings suggest that future empirical work estimating the effect of alcohol taxes on alcohol-related traffic fatalities should treat alcohol taxes as endogenous.
DOI
10.1177/1091142109332052
Recommended Citation
Fredriksson, P.G., Gohmann, S. & Mamun, K. (2009). Taxing under the influence? Corruption and U.S. state beer taxes. Public Finance Review 37(3), 339-365. doi: 10.1177/1091142109332052
Included in
Business Law, Public Responsibility, and Ethics Commons, Economic Policy Commons, State and Local Government Law Commons, Tax Law Commons
Comments
Fredriksson, P.G., Gohmann, S. & Mamun, K. (2009). Taxing under the influence? Corruption and U.S. state beer taxes. Public Finance Review 37(3), 339-365. doi: 10.1177/1091142109332052