Erhöhung der Mehrwertsteuer für Lebensmittel: Budget- und Wohlfahrtseffekte für Konsumenten / Increase of the Value Added Tax (VAT): Budget- and Welfare- Effects for Consumers
On January 1st 2007 the Federal Republic of Germany increased the value added tax (VAT) from16% up to 19%. The reduced VAT for food of 7% has been is kept but it is often debated. The issue in debate is whether distributional effects between different groups of households occur if the VAT of food is increased up to 19%. The objective of this analysis is to quantify the welfare effects of an increase of the VAT for different German household groups. Furthermore budget effects are calculated, which look upon household expenditures before and after the VAT increase. The methodical basis of this analysis is the Almost Ideal Demand System (AIDS) estimated with cross sectional data of 11,831 German households. Two aspects have to be taken into account with the use of cross-sectional data: insufficient price information and zero expenditures. To derive quality adjusted prices an approach of Cox/Wohlgenannt (1986) is applied. To take censoring of the dependent variables into account a procedure of Shonkwiler/Yen (1999) was employed. The results show that low income households and households with children will have comparatively high welfare losses.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 230 (2010)
Issue (Month): 1 (February)
|Contact details of provider:|| Web page: http://www.degruyter.com|
|Order Information:||Web: http://www.degruyter.com/view/j/jbnst|
When requesting a correction, please mention this item's handle: RePEc:jns:jbstat:v:230:y:2010:i:1:p:115-130. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.