Calendrier du 09 décembre 2021
brown bag Travail et Économie Publique
Du 09/12/2021 de 12:30 à 13:30
PSE- 48 boulevard Jourdan, 74014 Paris, salle R2-01
CHAVEZ Emmanuel (PSE)
Who pays for a Value Added Tax Hike at an International Border? Evidence from Mexico
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.
TOM (Théorie, Organisation et Marchés) Lunch Seminar
Du 09/12/2021 de 12:30 à 13:30
Salle R1-14 - Campus Jourdan - 75014 PARIS
PIVATO Marcus ( CY Cergy)
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