Arbeitspapier
The pass-through of temporary VAT rate cuts: Evidence from German retail prices
On 1 July 2020, value added tax (VAT) rates were reduced in Germany to fight the economic consequences of the Corona pandemic. The VAT rate reduction is temporary as rates will return to their previous level on 1 January 2021. We study the effects of the temporary VAT rate cut on German supermarket retail prices using an extensive webscrapped data set covering the daily prices of roughly 190,000 products. To identify the causal price effects, we compare the development of prices in Germany to those in Austria. Our findings indicate a nearly full pass-through of the VAT rate reduction on prices. On average, prices in German supermarket retail decreased by 2% after the implementation of the VAT rate reduction. We also provide evidence that prices in more competitive product markets decreased to a larger extent.
- Sprache
-
Englisch
- Erschienen in
-
Series: ifo Working Paper ; No. 341
- Klassifikation
-
Wirtschaft
Price Level; Inflation; Deflation
Taxation and Subsidies: Incidence
Business Taxes and Subsidies including sales and value-added (VAT)
- Thema
-
value added tax
tax incidence
price effects
competition
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Fuest, Clemens
Neumeier, Florian
Stöhlker, Daniel
- Ereignis
-
Veröffentlichung
- (wer)
-
ifo Institute - Leibniz Institute for Economic Research at the University of Munich
- (wo)
-
Munich
- (wann)
-
2020
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Fuest, Clemens
- Neumeier, Florian
- Stöhlker, Daniel
- ifo Institute - Leibniz Institute for Economic Research at the University of Munich
Entstanden
- 2020
Ähnliche Objekte (12)
The Pass-Through of Temporary VAT Rate Cuts: Evidence from German Supermarket Retail
Tax Cuts Starve the Beast! Evidence from Germany
Tax Cuts Starve the Beast! Evidence from Germany
Dialog Handwerk 1/2021 : Die Grundsteuer in Nordrhein-Westfalen: Grundlagen und Handlungsoptionen
Do businessmen make good governors?
Do Businessmen Make Good Governors?
Political leaders' socioeconomic background and public deficits: Evidence from OECD countries
Between Fear Mongers and Samaritans: Does Information Provision Affect Attitudes towards the Right of Asylum in Germany?
Survey on New Zealanders' attitudes towards and knowledge of macroeconomic policy issues: Documentation of survey methodology and descriptive results
Explaining central bank trust in an inflation targeting country: The case of the Reserve Bank of New Zealand
Always affecting the wrong people? The impact of US sanctions on poverty
Central Bank Independence in New Zealand: Public Knowledge About and Attitude Towards the Policy Target Agreement
The Pass-Through of Temporary VAT Rate Cuts: Evidence from German Supermarket Retail
Tax Cuts Starve the Beast! Evidence from Germany
Tax Cuts Starve the Beast! Evidence from Germany
Dialog Handwerk 1/2021 : Die Grundsteuer in Nordrhein-Westfalen: Grundlagen und Handlungsoptionen
Do businessmen make good governors?
Do Businessmen Make Good Governors?
Political leaders' socioeconomic background and public deficits: Evidence from OECD countries
Between Fear Mongers and Samaritans: Does Information Provision Affect Attitudes towards the Right of Asylum in Germany?
Survey on New Zealanders' attitudes towards and knowledge of macroeconomic policy issues: Documentation of survey methodology and descriptive results
Explaining central bank trust in an inflation targeting country: The case of the Reserve Bank of New Zealand
Always affecting the wrong people? The impact of US sanctions on poverty
Central Bank Independence in New Zealand: Public Knowledge About and Attitude Towards the Policy Target Agreement
The Pass-Through of Temporary VAT Rate Cuts: Evidence from German Supermarket Retail
Tax Cuts Starve the Beast! Evidence from Germany
Tax Cuts Starve the Beast! Evidence from Germany
Dialog Handwerk 1/2021 : Die Grundsteuer in Nordrhein-Westfalen: Grundlagen und Handlungsoptionen
Do businessmen make good governors?
Do Businessmen Make Good Governors?
Political leaders' socioeconomic background and public deficits: Evidence from OECD countries
Between Fear Mongers and Samaritans: Does Information Provision Affect Attitudes towards the Right of Asylum in Germany?
Survey on New Zealanders' attitudes towards and knowledge of macroeconomic policy issues: Documentation of survey methodology and descriptive results
Explaining central bank trust in an inflation targeting country: The case of the Reserve Bank of New Zealand
Always affecting the wrong people? The impact of US sanctions on poverty