Series: IMF Working Papers
Author(s): Rodrigo Mariscal , and Alejandro Werner
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 08 November 2018
Keywords: Western Hemisphere, Mexico, Value-Added Tax, Tax Incidence, Economic Welfare, Inflation Pass-Through, Difference-in-differences, Incidence, Models with Panel Data
In this paper we analyze the incidence of the VAT and its effects on the income distribution. To identify these effects, we rely on two tax reforms undertaken in Mexico that increased the VAT rate for a group of ci...