What goes up may not come down: Asymmetric incidence of value-added taxes

  • Youssef Benzarti
  • , Dorian Carloni
  • , Jarkko Harju
  • , Tuomas Kosonen

Research output: Contribution to journalArticleScientificpeer-review

79 Citations (Scopus)

Abstract

Previously circulated as “Do Prices Respond Differently to Increases and Decreases in Consumption Taxes?” The views expressed in this paper are the authors’ and should not be interpreted as those of the Congressional Budget Office, Labour Institute for Economic Research, or VATT. We thank the editor (Magne Mogstad), six anonymous referees, Alan Auerbach, Raj Chetty, Stefano DellaVigna, Ignacio Esponda, Itzik Fadlon, Naomi Feldman, Amy Finkelstein, Xavier Gabaix, Al Harberger, Jim Hines, Hilary Hoynes, Henrik Kleven, Wojciech Kopczuk, Peter Kuhn, Camille Landais, Maurizio Mazzocco, Pascal Michaillat, Ryan Oprea, Heather Royer, Emmanuel Saez, Joel Slemrod, Alisa Tazhitdinova, Gonzalo Vazquez-Bare, and numerous seminar participants for their helpful suggestions and comments. Tero Hokkanen, Jen Kades, and Carolina Kansikas provided outstanding research assistance. Harju gratefully acknowledges financial support from the Foundation for Economic Education. Data are provided as supplementary material online.

Original languageEnglish
Pages (from-to)4438-4474
Number of pages37
JournalJOURNAL OF POLITICAL ECONOMY
Volume128
Issue number12
DOIs
Publication statusPublished - Dec 2020
Externally publishedYes
Publication typeA1 Journal article-refereed

Funding

Previously circulated as “Do Prices Respond Differently to Increases and Decreases in Consumption Taxes?” The views expressed in this paper are the authors’ and should not be interpreted as those of the Congressional Budget Office, Labour Institute for Economic Research, or VATT. We thank the editor (Magne Mogstad), six anonymous referees, Alan Auerbach, Raj Chetty, Stefano DellaVigna, Ignacio Esponda, Itzik Fadlon, Naomi Feldman, Amy Finkelstein, Xavier Gabaix, Al Harberger, Jim Hines, Hilary Hoynes, Henrik Kleven, Wojciech Kopczuk, Peter Kuhn, Camille Landais, Maurizio Mazzocco, Pascal Michaillat, Ryan Oprea, Heather Royer, Emmanuel Saez, Joel Slemrod, Alisa Tazhitdinova, Gonzalo Vazquez-Bare, and numerous seminar participants for their helpful suggestions and comments. Tero Hokkanen, Jen Kades, and Carolina Kansikas provided outstanding research assistance. Harju gratefully acknowledges financial support from the Foundation for Economic Education. Data are provided as supplementary material online.

ASJC Scopus subject areas

  • Economics and Econometrics

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