VAT and Mark-Up Variations: An Empirical Analysis of Corporate Data Provided by French Exporters

TVA et taux de marge: une analyse empirique sur données d'entreprises

Philippe Andrade, Martine Carré and Agnès Benassy-Quere

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Abstract: We study how French exporters react to a VAT shock in a destination country. As VAT shocks are by nature almost permanent, exogenous, and without impact on marginal costs, the subsequent price reaction makes it possible to identify a pure demand-led mark-up adjustment. The results of an analysis of French customs data for 1995-2005 indicate a 67 % average mark-up adjustment for consumer goods. The adjustment is greaterfor companies, sectors, and destinations with a relatively higher market share. We then use our estimates and the Atkeson-Burstein (2008) theoretical framework to derive the distribution of mark-up adjustments of the various sector-destination pairs.

Keywords: value-added tax; pass-through; mark-up variation; firm-level data; export price; prix à l’exportation; données de firmes; variation de marges; taxe à la valeur ajoutée (search for similar items in EconPapers)
Date: 2012
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Published in Economie et Prévision, 2012, 2 (200-201), pp.1-17. ⟨10.3917/ecop.200.0002⟩

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Related works:
Working Paper: VAT and Mark-Up Variations: An Empirical Analysis of Corporate Data Provided by French Exporters (2012)
Working Paper: VAT and Mark-Up Variations: An Empirical Analysis of Corporate Data Provided by French Exporters (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00825253

DOI: 10.3917/ecop.200.0002

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