Niu Published in Two Economic Journals

November 1, 2017

Dr. Ben J. Niu, assistant professor of economics, has had two academic articles accepted for publication in economic journals.

Ben J. Niu

His article, “Retail bottle pricing at the border: evidence of cross-border shopping, fraudulent redemptions, and use tax evasion,” is slated to be published by The Journal of Economic Geography.  Michigan has a high bottle deposit while its neighboring states do not. It also has a lower sales tax.  The combination of these two policy differences generates incentives for illegal household behaviors. In the article, Niu examines the impact of these factors on the prices of deposit-eligible goods, finding that prices can be as much as 38 percent higher on certain sides of the border, with corresponding price patterns when moving further in-state. 

The second paper, “Equilibria and Location Choice in Corporate Tax Regimes,” was accepted for publication this year in Public Finance Review.  This article considers the various impacts of preferential tax arrangements designed to entice foreign firms to relocate.  Previous studies have produced mixed support for the ability of preferential rates to increase government revenues. Niu’s research suggests that when one accounts for variation in national populations and productivity, preferential tax treatment can lead to an increase in economic activity and tax revenue.