Economic theory tells us tax incidence does not depend on who is taxed. Chetty et al. (2009) show this may not always be true. They consider the differences between sales taxes and excise taxes in alcohol between 1970 and 2003. What is their finding? What does this finding imply for tax incidence? How should taxes be structured if you (a policy maker) want to reduce a market-distortion caused by the tax in alcohol market? What would be a spill-over effect on other commodity markets of the tax policy you propose? Explain the reasoning behind your answers for full credits