We exploit the unexpected announcement of an immediate, temporary VAT cut in Germany in the second half of 2020 as a … natural experiment to study the spending response to unconventional fiscal policy. We use survey and scanner data on … temporary VAT cut led to a substantial relative increase in durable spending of 36% for individuals with a high perceived pass …

devaluation of the peso. The real exchange rate depreciated and exports expanded. Paradoxically, export shares and real exchange … competition in the domestic market, and face financial constraints when exporting. Confronted to a large nominal devaluation … passing-through the devaluation to the domestic price only partially, expanding domestic sales. As a consequence, the more …

This paper investigates the impact of fiscal policy on profits using panel data for 19 high-income OECD countries … during the period 1975-1999. We estimate a profit equation in which profits depend on a set of fiscal variables. Our …

The harmonized European value-added tax (VAT) is anything but a modern consumption tax that taxes all goods and … taxed on output but on inputs. This has serious consequences. The VAT exemptions distort input choices, stimulate …