COEP Replication Package for "0.001% and Counting: Revisiting the Price Rounding Tax"

In 1991 and 2008,
Israel abolished the NIS 0.01 and NIS 0.05 coins, respectively. We assess how
much rounding tax shoppers ended up paying. Our estimates are more precise than
reported in the earlier studies because our dataset includes information on the
distribution of both, price endings and the size of shopping baskets, for three
different store types—supermarkets and drugstores, small grocery stores, and
convenience stores. We find that the rounding tax the shoppers
paid was about 0.001%–0.002% of the revenues in the fast-moving consumer goods
market. The finding has implications for the debate on abolishing low-denomination
coins.