This paper estimates the pass through of VAT changes to consumer prices, using a uniquedataset providing disaggregated, monthly data on prices and VAT rates for 17 Eurozonecountries over 1999-2013. Pass through is much less than full on average, and differsmarkedly across types of VAT change....

This paper estimates the pass through of VAT changes to consumer prices, using a unique dataset providing disaggregated, monthly data on prices and VAT rates for 17 Eurozone countries over 1999-2013. Pass through is much less than full on average, and differs markedly across types of VAT change....

This paper estimates the pass through of VAT changes to consumer prices, using a unique dataset providing disaggregated, monthly data on prices and VAT rates for 17 Eurozone countries over 1999-2013. Pass through is much less than full on average, and differs markedly across types of VAT change....

The sales tax is assumed to be regressive as those with higher incomes spend a smaller portion of their incomes. This conclusion is based on the presumption that the sales tax is a broad-based consumer tax and that consumers bear the burden of the tax. In practice, the tax is neither broad-based...