| Estimates of the e?ects of higher gasoline taxes often rely on the estimated gasoline demand elasticity with respect to gasoline prices, with an implicit assumption that consumers respond to a change in gasoline taxes in the same way as they respond to a commensurate change in tax-exclusive gasoline prices.
This paper investigates this underlying assumption by separately estimating consumer responses to gasoline taxes and the tax-exclusive gasoline price...............................................Full Article: Source
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