{
  "title": "Estimating VAT Pass Through",
  "publication": "IMF Working Papers, September 30, 2015",
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  "summary": "This paper estimates the pass through of VAT changes to consumer prices, using a unique dataset providing disaggregated, monthly data on prices and VAT rates for 17 Eurozone countries over 1999-2013. Pass through is much less than full on average, and differs markedly across types of VAT change.",
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    {
      "heading": "Overview",
      "content": "- Paper estimates the pass through of VAT changes to consumer prices using a unique dataset with disaggregated, monthly data on prices and VAT rates for 17 Eurozone countries over 1999-2013.\n- Authors: Dora Benedek, Ruud A. de Mooij, Philippe Wingender.\n- Date: September 30, 2015.\n- Series: Working Paper No. 2015/214; Issue: 214; Volume: 2015; Pages: 41.\n- DOI: https://doi.org/10.5089/9781513586359.001.\n- ISBN: 9781513586359.\n- ISSN: 1018-5941."
    },
    {
      "heading": "Key empirical findings",
      "content": "- Aggregate pass through:\n  - Pass through is much less than full on average.\n  - For changes in the standard rate, final pass through is about 100 percent.\n  - For reduced rates, final pass through is around 30 percent.\n  - For reclassifications, final pass through is essentially zero.\n- Dynamics and heterogeneity:\n  - Differing dynamics of pass through for durables and non-durables.\n  - No significant difference in pass through between rate increases and decreases.\n  - Signs of non-monotonicity in the relationship between pass through and the breadth of the consumption base affected.\n  - Indications of significant anticipation effects together with some evidence of lagged effects in the two years around reform.\n- Robustness:\n  - Results are robust against endogeneity and attenuation bias."
    },
    {
      "heading": "Subject areas and keywords (as listed)",
      "content": "- Subject: Consumer prices, Consumption, Consumption taxes, Labor, National accounts, Prices, Taxes, Unemployment rate, Value-added tax.\n- Keywords: confidence interval, Consumer prices, consumer spending, Consumption, consumption category, consumption share, Consumption taxes, cross-price elasticity, Europe, Pass through, Price effect, Tax incidence, Unemployment rate, Value added tax, Value-added tax, VAT rate change, VAT reform, WP.\n\nIMF Working Paper — Dora Benedek, Ruud A. de Mooij, and Philippe Wingender. \"Estimating VAT Pass Through\", September 30, 2015.\n\n---\n\n Content in this bundle\n\n- wp15214\n  - wp15214 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp15214 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/estimating-vat-pass-through-43322"
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    "Authors: Dora Benedek, Ruud A. de Mooij, Philippe Wingender",
    "Published: September 30, 2015",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513586359.001",
    "Paper estimates the pass through of VAT changes to consumer prices using a unique dataset with disaggregated, monthly data on prices and VAT rates for 17 Eurozone countries over 1999-2013.",
    "Authors: Dora Benedek, Ruud A. de Mooij, Philippe Wingender.",
    "Date: September 30, 2015.",
    "Series: Working Paper No. 2015/214; Issue: 214; Volume: 2015; Pages: 41.",
    "DOI: https://doi.org/10.5089/9781513586359.001.",
    "ISBN: 9781513586359.",
    "ISSN: 1018-5941.",
    "Aggregate pass through:",
    "Dynamics and heterogeneity:",
    "Robustness:",
    "Subject: Consumer prices, Consumption, Consumption taxes, Labor, National accounts, Prices, Taxes, Unemployment rate, Value-added tax.",
    "Keywords: confidence interval, Consumer prices, consumer spending, Consumption, consumption category, consumption share, Consumption taxes, cross-price elasticity, Europe, Pass through, Price effect, Tax incidence, Unemployment rate, Value added tax, Value-added tax, VAT rate change, VAT reform, WP.",
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