1.

Record Nr.

UNINA9910463593003321

Autore

Carare Alina

Titolo

Inflation smoothing and the modest effect of VAT in Germany / / Alina Carare and Stephan Danninger ; authorized for distribution by Ashoka Mody

Pubbl/distr/stampa

[Washington, District of Columbia] : , : International Monetary Fund, , 2008

©2008

ISBN

1-4623-5882-9

1-4527-9650-5

1-4518-7033-7

9786612841262

1-282-84126-2

Descrizione fisica

1 online resource (23 p.)

Collana

IMF Working Papers

IMF working paper ; ; WP/08/175

Altri autori (Persone)

DanningerStephan

ModyAshoka

Disciplina

332.4943

Soggetti

Inflation (Finance) - Germany

Value-added tax - Germany

Inflation (Finance) - Germany - Econometric models

Value-added tax - Germany - Econometric models

Electronic books.

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

Description based upon print version of record.

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

Contents; I. Introduction; II. Stylized Facts and Rationale for Inflation Smoothing; III. Empirical Analysis; IV. Conclusions; References; Appendix; I. Data; II. Method; III. Calculating The Effect on Core Inflation

Sommario/riassunto

Increases in German core inflation following the 2007 VAT hike were smaller than expected, leading to speculation about delayed inflationary effects. This paper argues to the contrary that price increases in advance of the VAT hike explain the small increase upon implementation. We find that core inflation rose by 0.36 percentage



point in the run up and by a further 0.40 percentage point at the time of the VAT hike. Cumulatively, the tax hike contributed to two thirds of the increase in core inflation in 2006-07 at an estimated pass-through of 73 percent. Most of the increase in 2006 was of ge