Table 3:
Pass-through rates of excise beer taxes to beer prices
| Prices | High | Average | Low | ||||||
|---|---|---|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | |
| FE model – dependent variable: Price (t) (N=188) | |||||||||
| Tax (t) | 0.86** (0.25) |
0.76** (0.23) |
1.37*** (0.28) |
0.88*** (0.12) |
0.83*** (0.11) |
1.26*** (0.19) |
0.82*** (0.06) |
0.79*** (0.06) |
1.04*** (0.14) |
| Dynamic model – dependent variable: Price (t) (N=134) | |||||||||
| Tax (t) | 1.08+ (0.56) |
1.08+ (0.58) |
1.47* (0.55) |
1.10** (0.37) |
1.10** (0.37) |
1.25*** (0.38) |
1.13*** (0.25) |
1.13*** (0.25) |
1.17*** (0.19) |
| Past tax (t−2) | −0.02 (0.32) | −0.19 (0.41) | −0.72 (0.68) | −0.16 (0.19) | −0.28 (0.25) | −0.68 (0.53) | −0.29+ (0.15) |
−0.40* (0.19) |
−1.02** (0.34) |
| Future tax (t+2) | 0.28 (0.48) | 0.13 (0.45) | −0.12 (0.62) | 0.08 (0.30) | −0.01 (0.29) | −0.1 (0.51) | −0.18 (0.19) | −0.25 (0.19) | −0.57 (0.3) |
| FD model – dependent variable: Δ Price (t- t−2) (N=161) | |||||||||
| Δ tax (t-t−2) | 1.19*** (0.31) |
1.18*** (0.31) |
1.33*** (0.36) |
1.11*** (0.20) |
1.10*** (0.21) |
1.21*** (0.24) |
0.99*** (0.16) |
0.98*** (0.17) |
1.04*** (0.2) |
| Demographics | No | Yes | Yes | No | Yes | Yes | No | Yes | Yes |
| Linear country-year trend | No | No | Yes | No | No | Yes | No | No | Yes |
Note:
+
p<0.1
*
p < 0.05
**
p < 0.01
***
p < 0.001. Standard errors clustered at the country level are in parentheses. FE and dynamic regressions control for year fixed effects, country fixed effects, and whether beer taxes are lower for small producers and whether beer taxes are progressive by strength. Demographic controls are GDP per capita, the percent of population aged 15-64, and the percent of population aged 65 and over. FD models control for the first differences of these covariates.