Benkovskis, Konstantins; Fadejeva, Ludmila - In: Applied Economics 46 (2014) 21, pp. 2520-2533
This article evaluates the inflation effect of recent value added tax (VAT) rate changes in Latvia by using consumer price index (CPI) microdata. 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...