TY - BOOK ID - 84783085 TI - Estimating VAT Pass Through AU - Benedek, Dora. AU - Mooij, Ruud A. AU - Wingender, Philippe. PY - 2015 SN - 151357258X 1513574965 1513567268 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Value-added tax KW - Exchange rate pass-through KW - Foreign exchange rate pass-through KW - Pass-through of exchange rates KW - Prices KW - Added-value tax KW - Goods and services tax KW - GST (Goods and services tax) KW - Tax on added value KW - VAT (Value-added tax) KW - Sales tax KW - Labor KW - Macroeconomics KW - Taxation KW - Price Level KW - Inflation KW - Deflation KW - Taxation and Subsidies: Incidence KW - Business Taxes and Subsidies KW - Macroeconomics: Consumption KW - Saving KW - Wealth KW - Unemployment: Models, Duration, Incidence, and Job Search KW - Public finance & taxation KW - Labour KW - income economics KW - Consumption KW - Consumer prices KW - Unemployment rate KW - Consumption taxes KW - Taxes KW - National accounts KW - Spendings tax KW - Economics KW - Unemployment KW - Germany KW - Income economics UR - https://www.unicat.be/uniCat?func=search&query=sysid:84783085 AB - 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. For changes in the standard rate, for instance, final pass through is about 100 percent; for reduced rates it is significantly less, at around 30 percent; and for reclassifications it is essentially zero. We also find: differing dynamics of pass through for durables and non-durables; no significant difference in pass through between rate increases and decreases; signs of non-monotonicity in the relationship between pass through and the breadth of the consumption base affected; and indications of significant anticipation effects together with some evidence of lagged effects in the two years around reform. The results are robust against endogeneity and attenuation bias. ER -