scholarly journals Hidden Baggage: Behavioral Responses to Changes in Airline Ticket Tax Disclosure

2020 ◽  
Vol 12 (4) ◽  
pp. 58-87
Author(s):  
Sebastien Bradley ◽  
Naomi E. Feldman

We examine the impact of a January 2012 enforcement action by the US Department of Transportation that required US air carriers and online travel agents to modify their web interfaces to incorporate all ticket taxes in up-front, advertised fares. We show that the more prominent display of tax-inclusive prices is associated with significant reductions in consumer tax incidence, demand, and ticket revenues along more heavily taxed itineraries. In particular, the fraction of unit taxes that airlines passed onto consumers fell by roughly 75 cents for every dollar of tax. These results present evidence of consumer inattention in a novel institutional setting featuring quasi-experimental variation in tax salience, economically significant tax amounts, and endogenous price responses. (JEL D91, H22, H25, H31, L84, L93)

Author(s):  
Gautam Gowrisankaran ◽  
Robert Town ◽  
Eric Barrette

Abstract We evaluate the impact of the Medicare HMO program and prescription drug coverage on elderly mortality using data from 1993 to 2000. We specify a model of plan entry and benefit choice and Medicare enrollee plan choice and health outcomes. We derive an estimator that is consistent with endogenous plan selection by using the quasi-experimental variation caused by peculiarities of the Medicare reimbursement system for HMOs. We find that, relative to traditional Medicare, enrollment in an HMO without drug coverage increases mortality while enrollment in an HMO with drug coverage has no significant impact. The economic value of the reduction in mortality from drug coverage far outweighs the costs. HMOs, those without drug coverage in particular, attract healthier enrollees than average.


2017 ◽  
Vol 59 (1) ◽  
pp. 67-69
Author(s):  
Chris K. Anderson ◽  
Saram Han

A recent Cornell Hospitality Quarterly article highlighted a unique natural experiment where an entire city had all its hotel delisted from all online travel agents for more than 4 years. The article provides great background to the delisting and highlights the impacts on hotel revenue and accommodation taxes for the county. The article estimates that even though the hotels relisted at all online travel agents (OTAs), there was a substantial gain to both hotels and accommodation tax collectors during the OTA delisting period. The impact estimates are based solely on the loss of demand realized in neighboring Phenix City, AL, once Columbus is relisted at OTAs. In the following, we highlight some concerns with these estimates and indicate that the losses may in fact be quite substantive and perhaps more indicative of why Columbus hotels relisted at the OTAs.


2011 ◽  
Vol 3 (1) ◽  
pp. 129-156 ◽  
Author(s):  
Phillip B Levine ◽  
Robin McKnight ◽  
Samantha Heep

This paper assesses the impact of policies to increase insurance coverage for young adults. The introduction of SCHIP in 1997 enabled low-income teens up to age 19 to gain access to public health insurance. More recent policies enabled young adults between the ages of 19 and (typically) 24 to remain covered under their parents' health insurance. We use the discrete break in coverage at age 19 to evaluate the impact of SCHIP, and quasi-experimental variation to evaluate the impact of “extended parental coverage” laws. Our results suggest that both types of policies were effective at increasing health insurance coverage. (JEL G22, H75, I18, J13)


2019 ◽  
Vol 19 (231) ◽  
Author(s):  
Matthieu Bellon ◽  
Jillie Chang ◽  
Era Dabla-Norris ◽  
Salma Khalid ◽  
Frederico Lima ◽  
...  

This paper examines the impact of e-invoicing on firm tax compliance and performance using administrative tax data and quasi-experimental variation in the rollout of VAT electronic invoicing in Peru. We find that e-invoicing increases reported firm sales, purchases and value-added by over 5 percent in the first year after adoption. The impact is concentrated among smaller firms and sectors with higher rates of non-compliance, suggesting that e-invoicing enhances compliance by lowering compliance costs and strengthening deterrence. The reform’s positive effects on tax collection are hindered by shortcomings in the VAT refund mechanism in Peru, suggesting that digital tools such as e-invoicing should be complemented by other reforms to improve revenue mobilization.


Recently, revenue management has become more common in all types of hotels, because of the rise of Online Travel Agents in Japan. Moreover, in response to the spread of the Consumer Generated Media, reputation (word of mouth) such as numerical online rating and textual online review has begun to exert a big influence on hotel conversion rate and room rate. When formulating their sales strategy, hotels must consider not only factors such as the facilities, brand, competitors, and sales channels but also their reputation. This paper examines the impact of reputation on revenue management practices at hotels using questionnaire survey and interview survey. We concluded that the reputation plays the following three roles for the hotels; (1) A indicator used to improve their facilities and services, (2) Open communication tool between customers and hotels, (3) KPI to review their sales strategy. In addition, reputation affects not only the conversion rate but also the room rate directly. Therefore, in order to implement revenue management successfully, revenue managers should regard reputation as a major KPI.


Author(s):  
Muhammad Fendrik ◽  
Elvina Elvina

This study aims to examine the influence of visual thinking learning to problemsolving skill. Quasi experiments with the design of this non-equivalent controlgroup involved Grade V students in one of the Elementary Schools. The design ofthis study was quasi experimental nonequivalent control group, the researchbullet used the existing class. The results of research are: 1) improvement ofproblem soving skill. The learning did not differ significantly between studentswho received conventional learning. 2) there is no interaction between learning(visual thinking and traditional) with students' mathematical skill (upper, middleand lower) on the improvement of skill. 3) there is a difference in the skill oflanguage learning that is being constructed with visual learning of thought interms of student skill (top, middle and bottom).


2018 ◽  
Vol 43 (1) ◽  
pp. 65-77 ◽  
Author(s):  
Carina Van Rooyen ◽  
Ruth Stewart ◽  
Thea De Wet

Big international development donors such as the UK’s Department for International Development and USAID have recently started using systematic review as a methodology to assess the effectiveness of various development interventions to help them decide what is the ‘best’ intervention to spend money on. Such an approach to evidence-based decision-making has long been practiced in the health sector in the US, UK, and elsewhere but it is relatively new in the development field. In this article we use the case of a systematic review of the impact of microfinance on the poor in sub-Saharan African to indicate how systematic review as a methodology can be used to assess the impact of specific development interventions.


Author(s):  
Aref Emamian

This study examines the impact of monetary and fiscal policies on the stock market in the United States (US), were used. By employing the method of Autoregressive Distributed Lags (ARDL) developed by Pesaran et al. (2001). Annual data from the Federal Reserve, World Bank, and International Monetary Fund, from 1986 to 2017 pertaining to the American economy, the results show that both policies play a significant role in the stock market. We find a significant positive effect of real Gross Domestic Product and the interest rate on the US stock market in the long run and significant negative relationship effect of Consumer Price Index (CPI) and broad money on the US stock market both in the short run and long run. On the other hand, this study only could support the significant positive impact of tax revenue and significant negative impact of real effective exchange rate on the US stock market in the short run while in the long run are insignificant. Keywords: ARDL, monetary policy, fiscal policy, stock market, United States


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