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Home Research areas Consumer behaviour and indirect taxation Modelling effects of indirect taxation and advertising

Modelling effects of indirect taxation and advertising

Indirect taxes are taxes levied on the goods and services people buy. These include VAT, fuel duty, and tobacco and alcohol duties. Our research looks at the extent to which such taxes are passed on to prices, the demand response such taxes generate and their impact on welfare. Our research also explores the role that advertising plays in influencing choices and the implications of policies that seek to restrict advertising.

Modelling effects of indirect taxation and advertising

Book chapter
excise_duties
Journal article | Review of Economic Studies
There are growing calls to restrict advertising of junk foods. Whether such a move will improve diet quality will depend on how advertising shifts consumer demands and how firms respond. We study an important and typical junk food market – the potato chips market.

Contacts

Contact IFS on 020 7291 4800 or mailbox@ifs.org.uk

Peter Levell
Senior Research Economist
Martin O'Connell
Associate Director
Kate Smith
Senior Research Economist
Rebekah Stroud
Research Economist