The effect of alcohol tax changes on retail prices: how do on-trade alcohol retailers pass through tax changes to consumers?

ABSTRACT: The effectiveness of alcohol duty increases relies on alcohol retailers passing the tax increase on to consumers. This study uses sales data from a market research company to investigate tax pass-through over 11 years for on-premise retailers in England and whether this varies across the price distribution, for different beverage categories and outlet types. Panel data quantile regression analysis is used to estimate the impact of 12 excise duty changes and 3 sales tax changes between 2007 and 2017 on prices. We use product-level quarterly panel data from for 777 alcoholic products. We undertake the regression at all outlets level separating products are analysed in seven broad beverage categories (Beer, Cider, RTDs, Spirits, Wine, Sparkling Wine, and Fortified Wine). We further test sensi

SUBMITTER: Wilson LB 

PROVIDER: S-EPMC7954722 | biostudies-literature | 2021 Apr

REPOSITORIES: biostudies-literature