The Cigarette Tax Problem

Deciding whether they want revenue, prohibition or smuggling, lawmakers have to decide how high to make sin taxes on items like cigarettes.

Our Weekly Roundup: From Cheap Gas to Expensive Soda

This week’s everyday economics stories include subsidies, human capital, game theory, price controls, inelastic demand, and monopolistic competition.

Problems With Sugary Drink Taxes

To avoid inelastic demand, a sugary drink tax would need to increase price substantially. Current taxes that average less than 5% have little impact.

Dude, Where’s My Tax Revenue?

Unpredictable human behavior for Colorado marijuana sales is but one example of why economic forecasting for tax revenue and GDP is inaccurate.

Why the Russian Government Loves Vodka

For 350 years, the Russian government has optimized the money it gets from vodka sales by creating a monopoly that takes advantage of inelastic demand.