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• W2076891766 abstract "We estimate the sensitivity of Internet retail purchasing to sales taxes using eBay data. Our first approach exploits the fact that a seller's location—and therefore the applicable tax rate—is revealed only after a buyer has expressed interest in an item. We document how adverse tax “surprises” reduce the likelihood of purchase and shift subsequent purchases toward out-of-state sellers. We then use more aggregated data to estimate that every one percentage point increase in a state's sales tax increases online purchases by state residents by almost 2 percent, while decreasing their online purchases from state retailers by 3–4 percent. (JEL H71, L81, L86)" @default.
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• W2076891766 date "2014-01-01" @default.
• W2076891766 modified "2023-09-30" @default.
• W2076891766 title "Sales Taxes and Internet Commerce" @default.
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• W2076891766 doi "https://doi.org/10.1257/aer.104.1.1" @default.
• W2076891766 hasPublicationYear "2014" @default.
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