quantitative analysis for Germany indicates that such concerns are misplaced. We find that the abolition of VAT differentiation has … only negligible redistributive effects. Instead, reduced VAT are found to act as industry-specific subsidies. Whereas the … overall welfare effects of pure VAT reforms are very small, a revenue-neutral introduction of a harmonised VAT combined with …

We develop a theory of commodity taxation featuring imperfect competition along with love-of-variety preferences and … application. Our welfare analysis shows that the marginal excess burden of taxation is very sensitive to the estimated love …-of-variety, which can overturn classical results on the desirability of ad valorem versus specific taxation …

from the current destination-based value-added taxation to a origin-based VAT within a dynamic general equilibrium …