02992nam 2200685 450 991046359300332120170816134630.01-4623-5882-91-4527-9650-51-4518-7033-797866128412621-282-84126-2(CKB)3170000000055065(EBL)1607936(SSID)ssj0000944146(PQKBManifestationID)11503214(PQKBTitleCode)TC0000944146(PQKBWorkID)10983259(PQKB)11591377(OCoLC)762926226(MiAaPQ)EBC1607936(EXLCZ)99317000000005506520140227h20082008 uy 0engur|n|---|||||txtccrInflation smoothing and the modest effect of VAT in Germany /Alina Carare and Stephan Danninger ; authorized for distribution by Ashoka Mody[Washington, District of Columbia] :International Monetary Fund,2008.©20081 online resource (23 p.)IMF Working PapersIMF working paper ;WP/08/175Description based upon print version of record.1-4519-1486-5 Includes bibliographical references.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 InflationIncreases 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 geIMF Working PapersInflation (Finance)GermanyValue-added taxGermanyInflation (Finance)GermanyEconometric modelsValue-added taxGermanyEconometric modelsElectronic books.Inflation (Finance)Value-added taxInflation (Finance)Econometric models.Value-added taxEconometric models.332.4943Carare Alina912467Danninger Stephan912468Mody Ashoka888386MiAaPQMiAaPQMiAaPQBOOK9910463593003321Inflation smoothing and the modest effect of VAT in Germany2043720UNINA