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  1. Does tax policy work when consumers have imperfect price information?
    theory and evidence
    Erschienen: June 2021
    Verlag:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    We investigate how the pass-through rate of commodity taxes depends on competition in a setting where consumers have imperfect information about prices. We use a theoretical search model that has two key predictions: First, the larger the number of... mehr

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    We investigate how the pass-through rate of commodity taxes depends on competition in a setting where consumers have imperfect information about prices. We use a theoretical search model that has two key predictions: First, the larger the number of price sensitive consumers, the higher the pass-through rate. Second, there is a hump-shaped relationship between the average pass-through experienced by consumers and the number of sellers. We test our theoretical predictions by studying pass-through in the context of a tax decrease and increase in the German retail fuel market. We estimate pass-through of these tax changes to diesel and gasoline prices using a unique dataset containing the universe of price changes at fuel stations in Germany and France and a synthetic difference-in-differences strategy. Our empirical results are in line with our theoretical predictions. Finally, we show that our theoretical framework can encompass and reconcile a large number of empirical observations in previous studies.

     

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    Sprache: Englisch
    Medientyp: Buch (Monographie)
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    Weitere Identifier:
    hdl: 10419/236680
    Schriftenreihe: CESifo working paper ; no. 9138 (2021)
    Schlagworte: pass-through; carbon tax; VAT; consumer search; competition
    Umfang: 1 Online-Ressource (circa 84 Seiten), Illustrationen
  2. Pass-through of cocoa prices along the supply chain
    what's left for farmers in Côte D’Ivoire?
    Erschienen: 2023
    Verlag:  RWI - Leibniz-Institut für Wirtschaftsforschung, Essen, Germany

    Universitäts- und Landesbibliothek Düsseldorf
    uneingeschränkte Fernleihe, Kopie und Ausleihe
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    Sprache: Englisch
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    ISBN: 9783969732045
    Schriftenreihe: Ruhr economic papers ; #1035
    Schlagworte: Cocoa; pass-through; price; policy impact; value chain
    Umfang: 23 Seiten, Diagramme
  3. Tax incidence on competing two-sided platforms
    lucky break or double jeopardy
    Erschienen: [2016]
    Verlag:  Centre for Operations Research and Econometrics, Louvain-la-Neuve

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    Sprache: Englisch
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    Weitere Identifier:
    hdl: 2078.1/173903
    Schriftenreihe: CORE discussion papers ; 2016, 12
    Schlagworte: Two-sided platforms; taxation; pass-through
    Umfang: 1 Online-Ressource (circa 29 Seiten), Illustrationen
  4. Globalisation and the decoupling of inflation from domestic labour costs
    Erschienen: September 2021
    Verlag:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    We provide novel systematic cross-country evidence that the link between domestic labour markets and CPI inflation has weakened considerably in advanced economies during recent decades. The central estimate is that the short-run pass-through from... mehr

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    We provide novel systematic cross-country evidence that the link between domestic labour markets and CPI inflation has weakened considerably in advanced economies during recent decades. The central estimate is that the short-run pass-through from domestic labour cost changes to core CPI inflation decreased from 0.25 in the 1980s to just 0.02 in the 2010s, while the longrun pass-through fell from 0.36 to 0.03, with the estimates in the 2010s no longer significant. We show that the timing of the collapse in the pass-through coincides with a steep increase in import penetration from a group of major manufacturing EMEs around the turn of the millennium, which signals increased competition and market contestability.

     

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    Weitere Identifier:
    hdl: 10419/245462
    Schriftenreihe: CESifo working paper ; no. 9281 (2021)
    Schlagworte: competition; globalisation; import penetration; inflation; labour market; pass-through; wage
    Umfang: 1 Online-Ressource (circa 19 Seiten), Illustrationen
  5. E pluribus plures
    shock dependency of the USD pass-through to real and financial variables
    Erschienen: [2022]
    Verlag:  European Central Bank, Frankfurt am Main, Germany

    This paper quantifies the pass-through of a US dollar appreciation on trade variables and domestic financial conditions in a panel of 34 countries. Pass-through coefficients are highly shock-dependent: if the appreciation is driven by a US... mehr

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    This paper quantifies the pass-through of a US dollar appreciation on trade variables and domestic financial conditions in a panel of 34 countries. Pass-through coefficients are highly shock-dependent: if the appreciation is driven by a US expansionary shock, the positive effects of stronger global demand - the "real" channel-dominate the negative effects of a stronger dollar - the "exchange rate" channel. As a result, a positive US demand (supply)-drive appreciation expands global trade and stock valuations up to 2.2 (2.5) and 8% (15%) respectively, while if the appreciation is driven by a monetary policy shock the sign is opposite, leading to a contraction in the order of 2.5% (3%) depending on the country. The coefficients also exhibit a large degree of cross-country heterogeneity, we find that financial and trade exposure to the US, trade openness and USD invoicing shares explain up to 60% of the USD pass-through after demand and supply shocks. Crosscountry differences, instead, are not explained by dollar invoicing if monetary policy or risk shocks determine USD movements. We explain this finding with the endogenous policy reaction of monetary authorities in emerging markets that stabilizes the exchange rate against the dollar and weakens the invoicing channel of dollar shocks.

     

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    Sprache: Englisch
    Medientyp: Ebook
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    ISBN: 9789289952682
    Weitere Identifier:
    hdl: 10419/269091
    Schriftenreihe: Working paper series / European Central Bank ; no 2684 (July 2022)
    Schlagworte: Exchange rate; USD; pass-through; VAR
    Umfang: 1 Online-Ressource (circa 86 Seiten), Illustrationen
  6. El papel del coste de los derechos de emisión de CO2 y del encarecimiento del gas en la evolución reciente de los precios minoristas de la electricidad en España
    Erschienen: 2021
    Verlag:  Banco de España, Madrid

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    Sprache: Spanisch
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    Schriftenreihe: Documentos ocasionales / Banco de España ; no. 2120
    Schlagworte: inflation; electricity market; European Emissions Trading System (EU ETS); pass-through
    Umfang: 1 Online-Ressource (circa 33 Seiten), Illustrationen
  7. Pass-through of temporary fuel tax reductions
    evidence from Europe
    Erschienen: [2022]
    Verlag:  Philipps-University Marburg, School of Business and Economics, Marburg

    Several European countries have implemented temporarily fuel tax reductions in 2022 to relieve the financial burden on their citizens. This paper provides estimates of the pass-through rates as well as the effect on retail margins for France, Germany... mehr

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    Several European countries have implemented temporarily fuel tax reductions in 2022 to relieve the financial burden on their citizens. This paper provides estimates of the pass-through rates as well as the effect on retail margins for France, Germany and Italy. Using a unique data set containing daily consumer prices for gasoline and diesel in five European countries, we employ a staggered Difference-in-Differences design. Our results show a very heterogeneous pass-through of the fuel tax reductions depending on the country and on the type of fuel. These findings also have important implications for the effective design of unconventional fiscal policy as well as for competition policy in the fuel market.

     

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    Weitere Identifier:
    hdl: 10419/273877
    Schriftenreihe: Joint discussion paper series in economics ; no. 2022, 39
    Schlagworte: pass-through; fuel taxes; staggered DiD
    Umfang: 1 Online-Ressource (circa 26 Seiten), Illustrationen
  8. VAT pass-through
    the case of a large and permanent reduction in the market for menstrual hygiene products
    Erschienen: September 2022
    Verlag:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    This paper is about the price effects caused by a VAT (value-added tax) reduction for menstrual hygiene products in Germany. Several aspects make this VAT reduction particularly interesting: The exogeneity of the reduction under otherwise constant... mehr

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    This paper is about the price effects caused by a VAT (value-added tax) reduction for menstrual hygiene products in Germany. Several aspects make this VAT reduction particularly interesting: The exogeneity of the reduction under otherwise constant economic conditions, the reduction was substantial and permanent, demand for the products is inelastic and in many cases, pass-through rates are more than 100 percent. We find that the VAT reduction is completely passed through to consumers. Despite this complete pass-through, we still detect a significant effect of retailer competition: When more retailers offer a product, the price reduction is larger.

     

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    hdl: 10419/265997
    Schriftenreihe: CESifo working paper ; no. 9962 (2022)
    Schlagworte: VAT reduction; pass-through; hygiene products; retailer competition
    Umfang: 1 Online-Ressource (circa 46 Seiten), Illustrationen
  9. Exchange rate pass-through in small, open, commodity-exporting economies
    lessons from Canada
    Erschienen: [2022]
    Verlag:  Banca d'Italia Eurosistema, [Rom]

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    Schriftenreihe: Temi di discussione / Banca d'Italia ; number 1368 (April 2022)
    Schlagworte: time series; factor analysis; prices; exchange rates; pass-through; commodity prices; oil shocks
    Umfang: 1 Online-Ressource (circa 68 Seiten), Illustrationen
  10. Assessing the pass-through of energy prices to inflation in the euro area
    Erschienen: [2023]
    Verlag:  Banca d'Italia, [Rom]

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    Schriftenreihe: Questioni di economia e finanza / Banca d'Italia ; number 745 (February 2023)
    Schlagworte: energy price shocks; inflation dynamics; pass-through
    Umfang: 1 Online-Ressource (circa 22 Seiten), Illustrationen
  11. Heterogeneity in the pass-through from oil to gasoline prices
    a new instrument for estimating the price elasticity of gasoline demand
    Erschienen: [2023]
    Verlag:  Center for Financial Studies, Goethe University, Frankfurt am Main, Germany

    We propose a new instrument for estimating the price elasticity of gasoline demand that exploits systematic differences across U.S. states in the pass-through of oil price shocks to retail gasoline prices. These differences, which are primarily... mehr

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    We propose a new instrument for estimating the price elasticity of gasoline demand that exploits systematic differences across U.S. states in the pass-through of oil price shocks to retail gasoline prices. These differences, which are primarily driven by variation in the cost of producing and distributing gasoline, create cross-sectional dispersion in gasoline price growth in response to an aggregate oil price shock. We find that the elasticity was stable near -0.3 until the end of 2014, but subsequently rose to about -0.2. Our estimates inform the recent debate about gasoline-tax holidays and policies to reduce carbon emissions.

     

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    Weitere Identifier:
    hdl: 10419/268889
    Schriftenreihe: CFS working paper series ; no. 685
    Schlagworte: Price elasticity of gasoline demand; pass-through; gasoline tax; gasoline supply; identification; IV; cross-section
    Weitere Schlagworte: Array
    Umfang: 1 Online-Ressource (circa 62 Seiten), Illustrationen
  12. VAT pass-through and competition
    evidence from the Greek Islands
    Erschienen: [2023]
    Verlag:  Centre for Economic Performance, London School of Economics and Political Science, London

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    Schriftenreihe: Discussion paper / Centre for Economic Performance ; no. 1923 (May 2023)
    Schlagworte: pass-through; tax incidence; gasoline; value added tax (VAT); market structure; competition; Greek Islands
    Umfang: 1 Online-Ressource (circa 44 Seiten), Illustrationen
  13. Heterogeneity in the pass-through from oil to gasoline prices
    a new instrument for estimating the price elasticity of gasoline demand
    Erschienen: March 2023
    Verlag:  CESifo, Munich, Germany

    We propose a new instrument for estimating the price elasticity of gasoline demand that exploits systematic differences across U.S. states in the pass-through of oil price shocks to retail gasoline prices. We show that these differences are primarily... mehr

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    We propose a new instrument for estimating the price elasticity of gasoline demand that exploits systematic differences across U.S. states in the pass-through of oil price shocks to retail gasoline prices. We show that these differences are primarily driven by the cost of producing and distributing gasoline, which varies with states' access to oil and gasoline transportation infrastructure, refinery technology, and environmental regulations, creating cross-sectional gasoline price shocks in response to an aggregate oil price shock. Time-varying estimates do not support the view that the gasoline demand elasticity has declined in absolute value to near zero since the 1980s. The elasticity was stable near -0.3 until the end of 2014. It rose to about -0.2 in 2015-16, but has remained stable since 2016. Gasoline demand is more responsive in states with lower personal income, higher unemployment rates and lower urban population shares. There is no evidence for an asymmetry in the elasticity with respect to positive and negative gasoline price shocks. We illustrate how these elasticity estimates inform the recent policy debate about the impact of gasoline tax holidays on consumers' discretionary income, about the demand destruction from the spike in gasoline prices after the invasion of Ukraine, and about the impact of rising gasoline prices on carbon emissions.

     

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    hdl: 10419/271994
    Schriftenreihe: CESifo working papers ; 10350 (2023)
    Schlagworte: price elasticity of gasoline demand; pass-through; gasoline tax; gasoline supply; identification; IV; cross-section
    Umfang: 1 Online-Ressource (circa 61 Seiten), Illustrationen
  14. Pass-through of cost-push shocks
    Erschienen: June 2023
    Verlag:  CESifo, Munich, Germany

    This paper examines the pass-through of cost-push shocks to customers at a granular level. Using unique firm-level survey data, we document five facts about pass-through across firms, sectors, and over time. We highlight a new channel relevant for... mehr

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    This paper examines the pass-through of cost-push shocks to customers at a granular level. Using unique firm-level survey data, we document five facts about pass-through across firms, sectors, and over time. We highlight a new channel relevant for pass-through: beliefs about the expected duration of the shock and its interaction with price rigidities. We then employ a hypothetical vignette to study the causal effect of nominal and real rigidities as well as the nature of the shock - size, duration, and economic environment - on pass-through. We observe gradual pass-through stretching over 24 months, especially for idiosyncratic shocks, undershooting the pass-through of aggregate shocks by 40%, in line with the presence of real rigidities. The survey design further allows us to infer the implied slope of the Phillips curve, which flattens after accounting for strategic complementarities.

     

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    Weitere Identifier:
    hdl: 10419/279270
    Schriftenreihe: CESifo working papers ; 10520 (2023)
    Schlagworte: pass-through; cost shocks; firms; heterogeneous expectations; uncertainty; nominal rigidities; real rigidities
    Umfang: 1 Online-Ressource (circa 57 Seiten), Illustrationen
  15. Exchange rates, tariffs and prices in 1930s' britain
    Erschienen: February 2023
    Verlag:  Economic History Department, London School of Economics and Political Science, London, UK

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    Schriftenreihe: Economic history working papers / London School of Economics and Political Science ; no: 351
    Schlagworte: Exchange rates; interwar; pass-through; prices; tariffs; United Kingdom
    Umfang: 1 Online-Ressource (circa 44 Seiten), Illustrationen
  16. Was the German fuel discount passed on to consumers?
    Erschienen: [2023]
    Verlag:  Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre, Lüneburg

    In this article, I analyze whether German gasoline stations passed on the gasoline tax reduction to consumers. I use a difference-in-differences approach with France as the control group, as well as data for all countries in the European Union. The... mehr

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    In this article, I analyze whether German gasoline stations passed on the gasoline tax reduction to consumers. I use a difference-in-differences approach with France as the control group, as well as data for all countries in the European Union. The German fuel discount was in effect from June to August 2022. It was intensely debated in the general public whether German gasoline stations had increased prices before the tax reduction. Such a price increase would have made it easier for gasoline stations to disguise a price increase. Further questions follow: How long did it take for the full tax reduction to be passed on to consumers? Did gasoline stations reduce the pass-on after a few weeks? As I am the first to use complete French and German high-frequency data for the entire treatment period, I can examine how the pass-through of the tax cut evolved over time. I find substantial variance in pass-through rates over time. The average pass-through is very high but remains incomplete for all fuel types.

     

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    hdl: 10419/278435
    Schriftenreihe: University of Lüneburg working paper series in economics ; no. 419 (March 2023)
    Schlagworte: pass-through; gasoline market; tax reduction; fuel taxes; petrol prices
    Umfang: 1 Online-Ressource (circa 44 Seiten), Illustrationen
  17. Distributional effects of payment card pricing and merchant cost pass-through in the United States and Canada
    Erschienen: 2020
    Verlag:  Federal Research Bank of Kansas City, Kansas City, Mo.

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    Schriftenreihe: KcFED research working papers ; RWP 20, 18 (December 2020)
    Schlagworte: Regressive effects; rewards; credit cards; interchange fees; pass-through
    Umfang: 1 Online-Ressource (circa 67 Seiten), Illustrationen
  18. Covid-19 shock
    pass-through to consumer prices in Tunisia
    Erschienen: [2022]
    Verlag:  Economic Research Forum (ERF), Dokki, Giza, Egypt

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    Schriftenreihe: ERF working papers series ; no. 1535 (February 2022)
    Schlagworte: COVID-19; trade policy; Tunisia; inflation; pass-through; imports
    Umfang: 1 Online-Ressource (circa 20 Seiten), Illustrationen
  19. The changing link between labor cost and price inflation in the United States
    Erschienen: [2021]
    Verlag:  European Central Bank, Frankfurt am Main, Germany

    The link between US labor cost and price inflation has weakened notably over the past three decades. In this paper we document this decline and analyse potential contributing factors. We consider four important trends that have shaped the US economy... mehr

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    The link between US labor cost and price inflation has weakened notably over the past three decades. In this paper we document this decline and analyse potential contributing factors. We consider four important trends that have shaped the US economy of late: (i) improved anchoring of inflation expectations; (ii) the changing constellation of shocks hitting the economy; (iii) increased trade integration and (iv) rising firm market power. We find that the improved anchoring of inflation expectations has played a particularly relevant role but also that the latter two trends offer promising avenues to understand the decline in pass-through from labor cost to price inflation. Our results also bring supportive evidence to the view taken by the FED in the context of its monetary policy strategy review that a robust job market can be sustained without causing an outbreak of inflation.

     

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    ISBN: 9789289948067
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    hdl: 10419/237722
    Schriftenreihe: Working paper series / European Central Bank ; no 2583 (August 2021)
    Schlagworte: Inflation; pass-through; labor costs; structural VAR; United States
    Umfang: 1 Online-Ressource (circa 37 Seiten), Illustrationen
  20. Exchange rate pass-through, monetary policy, and real exchange rates
    Iceland and the 2008 crisis
    Erschienen: [2021]
    Verlag:  Central Bank of Iceland, [Reykjavík]

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    Schriftenreihe: Working paper / Central Bank of Iceland ; 85 (2021)
    Schlagworte: Exchange rates; pass-through; inflation; monetary policy; real exchange rate
    Umfang: 1 Online-Ressource (circa 61 Seiten), Illustrationen
  21. Sectoral exchange rate pass-through in the euro area
    Erschienen: [2021]
    Verlag:  European Central Bank, Frankfurt am Main, Germany

    We study exchange rate pass-through (ERPT), i.e., the impact of exchange rate movements on inflation, focusing on euro area import prices at a sectorally disaggregated level. Our estimation strategy is based on VAR-X models, thus incorporating both... mehr

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    We study exchange rate pass-through (ERPT), i.e., the impact of exchange rate movements on inflation, focusing on euro area import prices at a sectorally disaggregated level. Our estimation strategy is based on VAR-X models, thus incorporating both endogenous and exogenous explanatory variables. The impulse response functions not only allow to study the extent but also the dynamics of ERPT. We find that ERPT is heterogeneous in terms of magnitude across sectors. We further investigate what industry-specific characteristics affect the heterogeneity of ERPT. Across various model specifications including import penetration, market integration, competition and value chain integration, we find that higher market concentration and higher backward integration in global value chains decrease pass-through, in line with previous findings in the literature.

     

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    Sprache: Englisch
    Medientyp: Ebook
    Format: Online
    ISBN: 9789289949217
    Weitere Identifier:
    hdl: 10419/249907
    Schriftenreihe: Working paper series / European Central Bank ; no 2634 (December 2021)
    Schlagworte: exchange rates; import prices; pass-through; euro area; sectoral disaggregation
    Umfang: 1 Online-Ressource (circa 40 Seiten), Illustrationen
  22. Minimum wages and insurance within the firm
    Erschienen: December 2021
    Verlag:  IZA - Institute of Labor Economics, Bonn, Germany

    Minimum wages alter the allocation of firm-idiosyncratic risk across workers. To establish this result, we focus on Italy, and leverage employer-employee data matched to firm balance sheets and hand-collected wage floors. We find a relatively larger... mehr

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    Minimum wages alter the allocation of firm-idiosyncratic risk across workers. To establish this result, we focus on Italy, and leverage employer-employee data matched to firm balance sheets and hand-collected wage floors. We find a relatively larger pass-through of firm-specific labor-demand shocks into wages for the workers whose earnings are far from the floors, but who are employed by establishments intensive in minimum-wage workers. We study the welfare implications of this fact using an incomplete-market model. The asymmetric passthrough uncovers a novel channel which tilts the benefits of removing minimum wages toward high-paid employees at the expense of low-wage workers.

     

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    Weitere Identifier:
    hdl: 10419/250604
    Schriftenreihe: Discussion paper series / IZA ; no. 14943
    Schlagworte: firm-specific shocks; pass-through; minimum wages; linked employer-employee data; general equilibrium; complementarities
    Umfang: 1 Online-Ressource (circa 48 Seiten), Illustrationen
  23. Exchange rates, tariffs and prices in 1930s' Britain
    Erschienen: 08 February 2023
    Verlag:  Centre for Economic Policy Research, London

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    Universitätsbibliothek Mannheim
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    Schriftenreihe: Array ; DP17892
    Schlagworte: Exchange rates; interwar; pass-through; prices; tariffs; United Kingdom
    Umfang: 1 Online-Ressource (circa 49 Seiten), Illustrationen
  24. Taxes and gender equality
    the incidence of the "tampon tax"
    Erschienen: July 2023
    Verlag:  CESifo, Munich, Germany

    Many countries are currently debating whether to reduce or eliminate taxes on feminine hygiene products as a measure to address "period poverty" and promote gender equality. Legislators often reject proposals involving reforms of "tampon taxes" as... mehr

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    Many countries are currently debating whether to reduce or eliminate taxes on feminine hygiene products as a measure to address "period poverty" and promote gender equality. Legislators often reject proposals involving reforms of "tampon taxes" as the pass-through of sales taxes into consumer prices cannot be guaranteed. This paper uses a permanent reduction of the tax on tampons & pads in Germany in 2020 as a natural experiment to study the price and unit-sales effects of the tax. Exploiting an extensive data set on the unit sales and scanner prices of feminine hygiene products in Germany and Italy, our results indicate that the incidence of tampon taxes is fully on consumers, while demand for these products is price-inelastic. We do not find cross-price effects for a closely related product group, which remained taxed at the standard tax rate. Both the pass-through and demand effects are found to be homogenous along the pre-reform market-share and price distributions.

     

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    Weitere Identifier:
    hdl: 10419/279331
    Schriftenreihe: CESifo working papers ; 10580 (2023)
    Schlagworte: tax incidence; pass-through; gender equality; feminine hygiene products; period poverty
    Umfang: 1 Online-Ressource (circa 42 Seiten), Illustrationen
  25. Heterogeneity in the pass-through from oil to gasoline prices
    a new instrument for estimating the price elasticity of gasoline demand
    Erschienen: January 2023
    Verlag:  Federal Reserve Bank of Dallas, Research Department, Dallas

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    Schriftenreihe: Working paper / Federal Reserve Bank of Dallas, Research Department ; 2301
    Schlagworte: Price elasticity of gasoline demand; pass-through; gasoline tax; gasolinesupply; identification; IV; cross-section
    Umfang: 1 Online-Ressource (circa 60 Seiten), Illustrationen