Calendrier du 08 février 2022
PSI-PSE (Petit Séminaire Informel de la Paris School of Economics) Seminar
Du 08/02/2022 de 17:00 à 18:00
R1-13, Zoom link: https://zoom.us/j/94740575953
GRAS Clément (PSE)
Communication overload: Incentive Theory with noisy communication channels
Paris Trade Seminar
Du 08/02/2022 de 14:30 à 16:00
PSE, 48 boulevard Jourdan, 75014 Paris, salle R1-09
LEVCHENKO Andrei (Michigan)
The Long-Term Effects of Industrial Policy
écrit avec J. Choi
Applied Economics Lunch Seminar
Du 08/02/2022 de 12:30 à 13:30
Salle R1.09 PSE
CHAVEZ Emmanuel (PSE)
Who Pays for a VAT Hike at an International Border? Evidence from Mexico
écrit avec Cristobal Domínguez
This research studies the effects of a value added tax (VAT) reform at Mexico's international frontiers. The reform raised the VAT rate from 11 to 16 percent at localities close to the international borders. We use the traditional static difference-in-differences methodology as well as dynamic difference-in-differences. The treatment group is composed of municipalities in the area where the VAT increased, and the control group is composed of municipalities close to the treatment group. We find that the VAT hike had a positive effect on prices of around half the size of the full pass-through conterfactual. In addition, the reform had a negative effect on workers' wages and no effect on employment. The negative effect on workers' real incomes is not smoothed out with credits. We find evidence of a negative effect on consumption at Mexico's northern border due to the reform. However, we find no evidence of an increase in shopping at the United States side of the border.