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About the article
Published Online: 2013-09-12
2005 is the year for the observations used by Bonnet and Réquillart (2011); soft-drink excise has been introduced in 2012 in France.
In France, the excise payments are not deductible from the VAT base: after payment of and t, the producer keeps .
These parameters correspond to those of Delipalla and O’Donnell (2001), with a difference in the specification of the ad valorem tax. As Delipalla and Keen (1992), they considered where the ad valorem tax rate v is applied to the selling price p. To reproduce European VAT (the ad valorem tax in the data), I consider the ad valorem tax applied to the selling price without VAT . Their v equals to . Besley and Rosen (1999) did not formalize the changing incidence of taxation, since their goal was to test full-shifting against over-shifting and under-shifting. Therefore, they only considered the pre-tax price and estimated whether it increases or decreases with respect to tax changes.
Indice des prix à la consommation: consumption price index.
All prices are converted to euro, because the time series of the mean prices built by INSEE are fully converted to euros.
Different lags are used, from 0 (equivalent to the White method for estimating standard errors) to 4. Results are very close the ones to the others using different lags; I present the results with lag equal to 1, the most appropriate to correct autocorrelation of the residuals at first order.