The Pass-through of Retail Crime
Fuente:
arXiv
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| Autori principali: | , |
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| Natura: | Preprint |
| Pubblicazione: |
2024
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| _version_ | 1866913555800915968 |
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| author | Hase, Carl Kasinger, Johannes |
| author_facet | Hase, Carl Kasinger, Johannes |
| contents | This paper shows that retailers increase prices in response to organized retail crime. We match store-level crime data to scanner data from the universe of transactions for cannabis retailers in Washington state. Using quasi-experimental variation from robberies and burglaries, we find a 1.5-1.8% price increase at victimized stores and nearby competitors. This rise is not driven by short-to-medium-term demand changes but is consistent with an own-cost shock. Effects are larger for independent stores and less concentrated markets. We estimate that crime imposes a 1% "hidden" unit tax on affected stores, implying $33.9 million additional social costs, primarily borne by consumers. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2407_07201 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | The Pass-through of Retail Crime Hase, Carl Kasinger, Johannes General Economics Economics This paper shows that retailers increase prices in response to organized retail crime. We match store-level crime data to scanner data from the universe of transactions for cannabis retailers in Washington state. Using quasi-experimental variation from robberies and burglaries, we find a 1.5-1.8% price increase at victimized stores and nearby competitors. This rise is not driven by short-to-medium-term demand changes but is consistent with an own-cost shock. Effects are larger for independent stores and less concentrated markets. We estimate that crime imposes a 1% "hidden" unit tax on affected stores, implying $33.9 million additional social costs, primarily borne by consumers. |
| title | The Pass-through of Retail Crime |
| topic | General Economics Economics |
| url | https://arxiv.org/abs/2407.07201 |