Working Paper
Salience and taxation: theory and evidence
Kroft, Kory; Chetty, Raj; Looney, Adam (2009)
This paper presents evidence that consumers underreact to taxes that are not salient and characterizes the welfare consequences of tax policies when agents make such optimization errors. The empirical evidence is based on two complementary strategies. First, we conducted an experiment at a grocery store posting tax inclusive prices for 750 products subject to sales tax for a three week period. Scanner data show that this intervention reduced demand for the treated products by 8 percent. Second, we find that state-level increases in excise taxes (which are included in posted prices) reduce ...
Finance and Economics Discussion Series , Paper 2009-11

Journal Article
Improving Opportunities for Economic Mobility: New Evidence and Policy Lessons
Chetty, Raj (2016-10)
In an excerpt from the St. Louis Fed?s new publication, Economic Mobility: Research & Ideas on Strengthening Families, Communities & the Economy, Raj Chetty discusses research on how children from disadvantaged backgrounds can be given better chances of succeeding.
Bridges , Issue Fall