Cheaper and more haircuts after VAT cut?:Evidence from the Netherlands

We study the effect of the reduction in the VAT rate on hairdresser services from 17.5 to 6% in the Netherlands in January 2000. Following Kosonen (J Public Econ 131:87-100, 2015), we use differences-in-differences to estimate the effects of this reform, with beauty salons as the main control group. In our preferred specification, we find close to full pass-through of the VAT cut into lower prices. However, we find no statistically or economically significant effect on the volume of sales or employment.

Verfasser: Jongen, Egbert
Lejour, Arjan
Massenz, Gabriella
Dokumenttyp: Artikel
Erscheinungsdatum: 2018
Reihe/Periodikum: Jongen , E , Lejour , A & Massenz , G 2018 , ' Cheaper and more haircuts after VAT cut? Evidence from the Netherlands ' , Economist-Netherlands , vol. 166 , no. 2 , pp. 135-154 . https://doi.org/10.1007/s10645-018-9315-1
Schlagwörter: VAT reform / Hairdressers / Differences-in-differences / Netherlands / TAXATION
Sprache: Englisch
Permalink: https://search.fid-benelux.de/Record/base-27602969
Datenquelle: BASE; Originalkatalog
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Link(s) : https://research.tilburguniversity.edu/en/publications/45bb3385-d83e-4da5-b9bc-2a5eee71d62f