Tax Incidence Anomalies
This paper reviews the literature on the incidence of consumption and labor taxes and focuses on the empirical results that show stark departures from the canonical model of tax incidence, which I refer to as anomalies.
Our Research: Incidence
Can VAT Cuts and Anti-Profiteering Measures Dampen the Effects of Food Price Inflation?
This research estimates the effect of a temporary and large (21 p.p.) value-added tax (VAT) cut and anti-profiteering measures on food necessities during a period of high inflation in Argentina.
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What Goes Up May Not Come Down: Asymmetric Incidence of Value Added Taxes
This paper provides evidence that prices respond significantly more strongly to increases than to decreases in value-added taxes (VATs).
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Who Really Benefits From Consumption Tax Cuts? Evidence From a Large VAT Cut in France
This paper evaluates the incidence of a large cut in value-added taxes (VATs) for French sit-down restaurants in 2009.
Read moreWho Really Benefits From Consumption Tax Cuts? Evidence From a Large VAT Cut in France