04413oam 22011774 450 991096554460332120250426110116.0978661284126297814623588231462358829978145279650514527965059781451870336145187033797812828412601282841262(CKB)3170000000055065(EBL)1607936(SSID)ssj0000944146(PQKBManifestationID)11503214(PQKBTitleCode)TC0000944146(PQKBWorkID)10983259(PQKB)11591377(OCoLC)762926226(IMF)WPIEE2008175(MiAaPQ)EBC1607936(IMF)WPIEA2008175WPIEA2008175(EXLCZ)99317000000005506520020129d2008 uf 0engur|n|---|||||txtccrInflation Smoothing and the Modest Effect of VAT in Germany /Stephan Danninger, Alina Carare1st ed.Washington, D.C. :International Monetary Fund,2008.1 online resource (23 p.)IMF Working PapersIMF working paper ;WP/08/175Description based upon print version of record.9781451914863 1451914865 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 general nature, while about one sixth can be attributed to durable goods and items with low degree of competition.IMF Working Papers; Working Paper ;No. 2008/175Inflation (Finance)GermanyValue-added taxGermanyInflation (Finance)GermanyEconometric modelsValue-added taxGermanyEconometric modelsBusiness Taxes and SubsidiesimfConsumer price indexesimfConsumptionimfDeflationimfEconomicsimfInflationimfMacroeconomicsimfMacroeconomics: ConsumptionimfPrice adjustmentsimfPrice indexesimfPrice LevelimfPricesimfPublic finance & taxationimfSavingimfSpendings taximfTaxationimfValue-added taximfWealthimfGermanyimfInflation (Finance)Value-added taxInflation (Finance)Econometric models.Value-added taxEconometric models.Business Taxes and SubsidiesConsumer price indexesConsumptionDeflationEconomicsInflationMacroeconomicsMacroeconomics: ConsumptionPrice adjustmentsPrice indexesPrice LevelPricesPublic finance & taxationSavingSpendings taxTaxationValue-added taxWealth332.4943Danninger Stephan1815859Carare Alina1815860DcWaIMFBOOK9910965544603321Inflation Smoothing and the Modest Effect of VAT in Germany4371396UNINA