Taxation and market power in the legal marijuana industry.
We study tax and regulatory policy in the legal marijuana market using unique administrative data from Washington state. Washington's retail entry restrictions have resulted in firms with substantial market power who behave like local monopolists. We show how the presence of market power causes tax...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 52; no. 3; pp. 559 - 596 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Sep2021
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=152513499&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 152513499 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 07416261 56RJ jtl: RAND Journal of Economics (Wiley-Blackwell) issn: 07416261 maglogo: Y pubinfo: dt: Sep2021 vid: 52 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 152513499 10.1111/1756-2171.12384 ppf: 559 ppct: 37 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 1.3MB tig: atl: Taxation and market power in the legal marijuana industry. aug: au: Hollenbeck, Brett Uetake, Kosuke affil: Anderson School of Management, UCLA School of Management, Yale University su: Washington (State) Fiscal policy Taxation Externalities Market power Marijuana industry Price discrimination Drug laws sug: subj: Fiscal policy Taxation Externalities Washington (State) Drugs and Druggists' Sundries Merchant Wholesalers Pharmaceuticals and pharmacy supplies merchant wholesalers Pharmaceutical and medicine manufacturing Pharmaceutical Preparation Manufacturing Public Finance Activities All other miscellaneous crop farming Market power Marijuana industry Price discrimination Drug laws ab: We study tax and regulatory policy in the legal marijuana market using unique administrative data from Washington state. Washington's retail entry restrictions have resulted in firms with substantial market power who behave like local monopolists. We show how the presence of market power causes tax and regulatory policy recommendations to differ from standard models that assume perfect competition. Combining structural demand models with measured pass‐through, we show that marijuana is not overtaxed at 37% but is still on the upward sloping region of the Laffer curve and that these taxes have high social costs and are mainly borne by consumers. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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