Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/219394 
Year of Publication: 
2020
Series/Report no.: 
ZEW Discussion Papers No. 20-027
Publisher: 
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung, Mannheim
Abstract: 
Who benefits from the evasion of value added taxes (VAT)? Using a reform that enforced VAT on previously non-compliant large retailers in Armenia, we estimate a onethird passthrough of the tax burden on prices. This suggests that pre-enforcement evasion rents were broadly shared with consumers through lower prices. Our theoretical and empirical results explain this low passthrough rate by the supply-chain effects and second-order compliance responses of firms to VAT enforcement. Our distributional analysis shows that households at the bottom of the income distribution benefit more from the rents of evasion.
Subjects: 
Value added tax
Incidence
Evasion
Enforcement
Distributional Effects
JEL: 
D11
H22
H26
Document Type: 
Working Paper

Files in This Item:
File
Size
969.51 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.