The Intertemporal and Simultaneous Substitution Effects of a Consumption Tax Rate Increase: Evidence from Japan

This paper empirically investigates the effects of the 1995 and 1996 tax cuts in Japan. Both tax cuts were introduced to compensate consumers for an impending consumption tax rate increase from 3% to 5% in 1997. We use micro-level data of the Family Income and Expenditure Survey to evaluate effects of these tax cuts on household consumption, focusing on the differences between the two episodes. Our estimates indicate that the Ricardian equivalence largely holds. Only the 1995 tax cut distinctly stimulated consumption on its impact, while the 1996 tax cut had almost no effect on the consumption, presumably because it was implemented much closer to the coming tax increase.

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Impact of the consumption tax rate increase on out-of-hospital cardiac arrest in Japan: an interrupted time series analysis

BMJ Open ◽

10.1136/bmjopen-2018-026361 ◽

2019 ◽

Vol 9 (6) ◽

pp. e026361

Author(s):

Daisuke Onozuka ◽

Kunihiro Nishimura ◽

Akihito Hagihara

Keyword(s):

Time Series ◽

Cardiac Arrest ◽

Time Series Analysis ◽

Rate Increase ◽

Interrupted Time Series ◽

Consumption Tax ◽

Interrupted Time Series Analysis ◽

Tax Rate ◽

Series Analysis ◽

Hospital Cardiac Arrest

ObjectivesThe Japanese government increased the consumption tax rate from 5% to 8% on 1 April 2014. The impact of this policy on the incidence of out-of-hospital cardiac arrest (OHCA) is unknown. Thus, we aimed to evaluate a potential association between the consumption tax rate increase and OHCA.DesignAn interrupted time series design.SettingNational registry data for all cases of OHCA in Japan.ParticipantsAll OHCA cases of presumed cardiac origin in Japan between January 2005 and December 2016.Primary outcome measureWe used a quasiexperimental design with interrupted time series analysis to investigate whether the consumption tax rate increase was associated with changes in OHCA trends after adjusting for baseline trends. The effective date of the consumption tax rate increase (1 April 2014) was used to split the OHCA data into categories of before and after the change.ResultsIn total, 808 055 OHCAs of presumed cardiac origin were reported during the study period. Prior to the consumption tax rate increase, the mean monthly OHCA rate was 5.12 cases per 100 000 population (mean monthly count: 5483.45). After adjusting for underlying trends, there was a substantial step change in the incidence of OHCAs (relative risk (RR): 0.921; 95% CI 0.889 to 0.955).ConclusionsThe implementation of the consumption tax rate increase was associated with a significant decrease in the incidence of OHCAs in Japan.

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Unit Sales and Price Effects of Preannounced Consumption Tax Reforms: Micro-level Evidence from European VAT

American Economic Journal Economic Policy ◽

10.1257/pol.20170708 ◽

2021 ◽

Vol 13 (3) ◽

pp. 103-134

Author(s):

Thiess Buettner ◽

Boryana Madzharova

Keyword(s):

Rate Change ◽

Substitution Effects ◽

Consumption Tax ◽

Tax Reforms ◽

Product Data ◽

Tax Rate ◽

Price Effects ◽

Permanent Effect ◽

Micro Level ◽

Tax Changes

We study the effects of consumption tax changes on prices and unit sales of durables utilizing micro-level product data. The results show that tax rate changes are fully shifted into prices. An anticipated tax rate change causes a temporary shift in unit sales shortly before implementation, which is more than offset by adjustments upon and after implementation. If the tax rate increases by 1 percentage point, unit sales rise by 2.5 percent on average in the last month before implementation. The permanent effect is a drop in sales by 2 percent below their original level, implying relatively strong intertemporal substitution effects. (JEL H25, H31, E62, H24, D12, E21)

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The Impact of Consumption Tax Rate on Consumption - A Panel Data Analysis for European Countries (1995-2007)

SSRN Electronic Journal ◽

10.2139/ssrn.1529242 ◽

2009 ◽

Cited By ~ 5

Author(s):

Miltiades N. Georgiou

Keyword(s):

Data Analysis ◽

Panel Data ◽

Panel Data Analysis ◽

European Countries ◽

Consumption Tax ◽

Tax Rate ◽

The Impact

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Retrospective Analysis of Tobacco Control Measures and Policies in China

Tobacco Regulatory Science ◽

10.18001/trs.7.4.6 ◽

2021 ◽

Vol 7 (4) ◽

pp. 295-299

Author(s):

Lian He ◽

Xiaoxin Chen ◽

Chunzi Shao

Keyword(s):

Tobacco Control ◽

Control Period ◽

Control Measures ◽

Chinese Government ◽

Consumption Tax ◽

Short Term ◽

Tax Rate ◽

Effective Role ◽

Regulatory Measures ◽

And Control

Objectives: Tobacco control measures can be divided into three types: regulatory, economic, and informational respectively. This paper focuses on the role and effect of different types of tobacco control measures during the epidemic prevention and control period in China. Conclusion: Firstly, as strong and powerful measures, economic measures can significantly reduce cigarette sales in the short term. However, the Chinese government did not adjust the cigarette consumption-tax rate during the period. Economic measures thus did not play an important role. Secondly, Due to few people in public places and workplaces, regulatory measures were "out of effect" in a short term. Therefore, there were insufficient evidence to find out whether regulatory measures are effective or not. Finally, China's tobacco production increased slightly during this period. This reflected that informational measures did not play an effective role.

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The Impact of Austerity Measures on Government Borrowing in GIIPS

International Journal of Economics and Finance ◽

10.5539/ijef.v8n12p106 ◽

2016 ◽

Vol 8 (12) ◽

pp. 106 ◽

Cited By ~ 1

Author(s):

Imre Ersoy ◽

Talha Yanmaz

Keyword(s):

Empirical Analysis ◽

Rate Increase ◽

Panel Cointegration ◽

Government Debt ◽

Cointegration Test ◽

Tax Rate ◽

Economic Agents ◽

Panel Cointegration Test ◽

Using Data ◽

The Impact

The article investigates the effects of austerity measures on government debt in Greece, Ireland, Italy, Portugal and Spain (GIIPS) by employing panel cointegration test and using data between 1998 and 2014. The result of empirical analysis shows that tax rate increase on personal income did not result with decrease in government debt. Interest rate and wage that are control variables are also positively related with government debt levels. The result of this empirical analysis suggests that the impact of austerity measures on government borrowing in GIIPS is positive, despite the expectations of certain economic agents.

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