Incidence of Indirect Taxes - Are There Rules of Thumb for Policy-Makers?
Independent; Council Secretariat
December 16, 2010
The paper summarizes recent empirical studies on indirect tax incidence and assesses whether the robust explanations from theory and earlier empirical results are confirmed. Although there are a number of influence factors of tax incidence in real markets which have to be analysed on a case-by-case basis, some cautious rules-of-thumb can be deducted which might bring tax policy more in line with both traditional and more recent conclusions.
Number of Pages in PDF File: 24
Keywords: Tax Incidence, Indirect Tax, Tax Policy, VAT
JEL Classification: E62, H22, D30
Date posted: December 17, 2010