Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 3, 2010 erstellt
Description:
In chile, as in many other countries, cigarettes are among the goods most heavily taxed with a tax rate of. Such a high tax rate might have significant effects on tax revenue, cigarette consumption, the health effects related to its consumption, the size of the informal cigarette market, and even the degree of competition in the industry. The magnitude of these effects depends not only on taxation levels but also on the tax structure used. In this paper I analyze cigarette taxes in Chile, providing empirical evidence on some of its effects and estimating some relevant demand parameters to simulate a Laffer curve. Finally, based on a literature review, a theoretical anaysis and the empirical results for Chile I propose a different tax structure than the one currently used, which keeps revenue constant but is more efficient