The effects of countercyclical fiscal policy: firm-level evidence from temporary consumption tax cuts in Turkey

Misch, Florian ; Seymen, Atilim

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URN: urn:nbn:de:bsz:180-madoc-328933
Document Type: Working paper
Year of publication: 2012
The title of a journal, publication series: ZEW Discussion Papers
Volume: 12-082
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: E32 , E62 , H20,
Subject headings (SWD): Verbrauchsteuer , Steuersenkung , antizyklische Finanzpolitik , Wirkungsanalyse , Unternehmen , Absatz , Türkei
Keywords (English): Countercyclical fiscal policy , consumption tax cuts , firm-level data
Abstract: The paper investigates the effects of temporary consumption tax cuts using firm-level data. As part of its countercyclical measures implemented during the recent global economic crisis, Turkey temporarily lowered consumption taxes on selected durables. Using data on the change of sales of firms that benefited from this measure and of those that did not over different periods, we perform a difference-in-difference analysis where we also control for various unobservable effects including sector-specific shocks to address potential endogeneity. We find positive and robust effects of consumption tax cuts on the change of firm sales which is consistent with theoretical predictions.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.

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