We examine whether consumers bear corporate taxes through higher prices. Using data on the gas prices of German gas stations and local variation in business tax rates, we find that higher business taxes increase consumer prices, indicating corporate taxes fall partly on consumers. Prices...

The effect of tariff evasion on price formations is relevant in understanding the welfare consequence of illicit trades. Previous empirical studies demonstrate that tax evasion reduces the effects of tariffs on equilibrium prices, but admit an alternative explanation: traders bore the incidence....

We develop a theory of commodity taxation featuring imperfect competition along with love-of-variety preferences and endogenous firm entry and exit, and we derive new formulas for the efficiency and pass-through of specific and ad valorem taxes. These formulas unify existing canonical ones and...

Using quarterly data for German counties, we study how housing prices and offers respond to higher transaction costs induced by tax increases. Since 2006, states can set their own tax rates on real estate transfers. Several and substantial tax hikes generate variation across time and states...

Using quarterly data for German counties, we study how housing prices and offers respond to higher transaction costs induced by tax increases. Since 2006, states can set their own tax rates on real estate transfers. Several and substantial tax hikes generate variation across time and states...

The present study provides estimates of the Effective Marginal Tax Rates (EMTRs) for a sample of 17 OECD countries and 11 manufacturing sectors in a single framework encompassing capital, labour and energy taxes. Our cross-country/cross-sector approach allows us comparing the incentives provided...

This paper reproduces Lerner's (1936) result to reconcile different understanding about tax incidence. It proves that a tax or tariff does not shift any demand, supply or offer curve. It disproves the traditional tax incidence model and the Coase theorem. This paper also corrects Lerner's...

Much of the controversy surrounding recent policy proposals to broaden the base for value added taxes (VAT) revolves around who ultimately bears the burden of these taxes. The typical assumption is that consumer prices fully reflect taxes, so that the main empirical question is how the tax...

The present study provides estimates of the Effective Marginal Tax Rates (EMTRs) for a sample of 17 OECD countries and 11 manufacturing sectors in a single framework encompassing capital, labour and energy taxes. Our cross-country/cross-sector approach allows us comparing the incentives provided...

This paper uses quasi-experimental variation in payroll tax rates in Finland to investigate how firms use their input factors. We find that higher payroll tax rates lead to large employment responses and have no effects on employee-level earnings. As payroll taxes increase, firms substitute away...