TY  - RPRT
        AU  - Rozema, Kyle
AU  - Ziebarth, Nicolas R.
        TI  - Behavioral Responses to Taxation: Cigarette Taxes and Food Stamp Take-Up
        PY  - 2015/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8907
        UR  - https://www.iza.org/index.php/publications/dp8907
        AB  - This paper investigates a previously unexplored behavioral response to taxation: whether smokers compensate for higher cigarette taxes by enrolling in food stamps. First, we show theoretically that increases in cigarette taxes can induce food stamp take-up of non-enrolled, eligible smoking households. Then, we study the theoretical predictions empirically by exploiting between and within-household variation in food stamp enrollment from the Current Population Survey as well as data from the Consumer Expenditure Survey. The empirical evidence strongly supports the model predictions. Higher cigarette taxes increase the probability that low-income smoking households take-up food stamps.
        KW  - unintended consequences
KW  - cigarette taxes
KW  - food stamp take-up
KW  - tax pass-through rate
        ER  -