02078cas a2200265 a 4500 AALejournalIMF015542 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513586359 1018-5941 BD-DhAAL BD-DhAAL Benedek, Dora. Estimating VAT Pass Through / Dora Benedek, Ruud A. Mooij, Philippe Wingender. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (41 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. For changes in the standard rate, for instance, final pass through is about 100 percent; for reduced rates it is significantly less, at around 30 percent; and for reclassifications it is essentially zero. We also find: differing dynamics of pass through for durables and non-durables; no significant difference in pass through between rate increases and decreases; signs of non-monotonicity in the relationship between pass through and the breadth of the consumption base affected; and indications of significant anticipation effects together with some evidence of lagged effects in the two years around reform. The results are robust against endogeneity and attenuation bias. Mode of access: Internet Mooij, Ruud A. Wingender, Philippe. IMF Working Papers; Working Paper ; No. 2015/214 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/214/001.2015.issue-214-en.xml IMF e-Library