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Who pays commodity taxes? Evidence from French reforms, 1987-1999

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  • Clément Carbonnier

    (PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

The point of this paper is to measure empirically the distribution of the commodity tax burden between consumers and producers. For that purpose, two French reforms are studied. These reforms are steep decreases of the VAT rate on housing repair services on the one hand, and on new car sales on the other hand, the last sector being far more concentrated. The consumer share of the commodity tax burden is 77% in the housing repair services market and 52% in the new car sales market. That confirms the theoretical result of the consumer share increasing with the competition level. This result may influence recommendations about differentiated commodity tax rates.

Suggested Citation

  • Clément Carbonnier, 2006. "Who pays commodity taxes? Evidence from French reforms, 1987-1999," Working Papers halshs-00590515, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00590515
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00590515
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    References listed on IDEAS

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    1. Delipalla, Sofia & Keen, Michael, 1992. "The comparison between ad valorem and specific taxation under imperfect competition," Journal of Public Economics, Elsevier, vol. 49(3), pages 351-367, December.
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    6. Clément Carbonnier, 2005. "Is Tax Shifting Asymmetric? Evidence from French VAT reforms, 1995-2000," Working Papers halshs-00590719, HAL.
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    Cited by:

    1. Netherlands Bureau for Economic Policy Analysis, 2015. "A study on the economic effects of the current VAT rates structure," Taxation Studies 0056, Directorate General Taxation and Customs Union, European Commission.
    2. Carbonnier, Clement, 2007. "Who pays sales taxes? Evidence from French VAT reforms, 1987-1999," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 1219-1229, June.
    3. Sui, Jin, 2020. "Effects of fiscal devaluation in a closed economy," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224648, Verein für Socialpolitik / German Economic Association.
    4. Philippe Andrade, 2010. "Competition and Pass-through on international markets: Firm-level evidence from VAT shocks," 2010 Meeting Papers 820, Society for Economic Dynamics.

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