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A Theory Of Vertical Political Interaction In Cigarette Taxation, Khawaja Mamun
A Theory Of Vertical Political Interaction In Cigarette Taxation, Khawaja Mamun
WCBT Faculty Publications
This paper examines the political interdependence of federal and state cigarette tax rates. We develop a lobby group model where a state’s endogenous reaction to a federal cigarette tax hike depends crucially on the political responses of the cigarette producer and anti-smoking lobby groups.