Incidence and Distributional Effects of Value Added Taxes

Dados Bibliográficos

ID9706659
AutoresIngvil Gaarder (University of Chicago, autor correspondente)
Ano2019
Volume129
Fascículo618
Páginas853-876
Data de publicação2019-02-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoThe Economic Journal (JOURNAL)
Identificadores do periódicoISSN: 0013-0133 • E-ISSN: 1468-0297
EditoraOxford University Press (OUP) (PUBLISHER)
DOI10.1111/ecoj.12576
OpenAlexW3121621474
IdiomaEN
Citações recebidas8
Referências citadas24

This article examines the incidence and distributional effects of value added taxes (VAT). A sharp change in the VAT policy on food in Norway is exploited. My findings suggest that taxes levied on food are completely shifted to consumer prices, while there is little spill-over effects to most other goods. To understand the distributional effects of the reform, one uses expenditure data and estimate the compensating variation of the tax induces price changes. I find that lowering the VAT on food attenuates inequality in consumer welfare, in part because households adjust their spending patterns in response to the price change

Consumer welfare · Demographic economics · Economics · Incidence (geometry · Indirect tax · Inequality · Market economy · Public economics · Tax incidence · Tax reform · Value (mathematics · Value-added tax · Welfare · Economic theories and models · Economics of Agriculture and Food Markets · Gender, Labor, and Family Dynamics