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VAT Rate Effect on Price Setting Behaviour in Latvia: Evidence from CPI Micro Data

Benkovskis, Konstantins; Fadejeva, Ludmila - Latvijas Banka - 2013

This paper evaluates the inflation effect of recent VAT rate changes in Latvia by using CPI micro data. Our findings suggest that the pass-through of the tax rate to consumer prices is strong in case of upward tax adjustments, especially when there are no demand restrictions, while the...

Persistent link: https://www.econbiz.de/10010944599