Anticipation, Tax Avoidance, and the Price Elasticity of Gasoline Demand – Coglianese – 2016 – Journal of Applied Econometrics – Wiley Online Library

http://onlinelibrary.wiley.com/doi/10.1002/jae.2500/abstract;jsessionid=95FF4C2033E9FB619A55613D9F2FA379.f03t04

gasoline taxes, but this approach tends to yield implausibly large price elasticities. We demonstrate that anticipatory behavior provides an important explanation for this result. Gasoline buyers increase purchases before tax increases and delay purchases before tax decreases

Thanks. God bless.

Aaron

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