Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67406
Authors: 
Misch, Florian
Seymen, Atılım
Year of Publication: 
2012
Series/Report no.: 
ZEW Discussion Paper 12-082
Abstract: 
The paper investigates the effects of temporary consumption tax cuts using firm-level data. As part of its countercyclical measures implemented during the recent global economic crisis, Turkey temporarily lowered consumption taxes on selected durables. Using data on the change of sales of firms that benefited from this measure and of those that did not over different periods, we perform a difference-in-difference analysis where we also control for various unobservable effects including sector-specific shocks to address potential endogeneity. We find positive and robust effects of consumption tax cuts on the change of firm sales which is consistent with theoretical predictions.
Subjects: 
countercyclical fiscal policy
consumption tax cuts
firm-level data
JEL: 
E32
E62
H20
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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