New working paper: The signaling effect of gasoline taxes and its distributional implications

The signaling effect of gasoline taxes impacts on long-run consumer decisions in addition to the incentives provided by tax-inclusive gasoline prices. This paper by Silvia Tiezzi, University of Siena and Stefano F. Verde, Florence School of Regulation Climate, proposes and tests a better defined interpretation of the different responses of gasoline demand to tax changes and to market-related price changes.

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