The Intertemporal Substitution and Income Effects of a VAT Rate Increase: Evidence from Japan

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David CASHIN; UNAYAMA Takashi;

One of the biggest political issues in Japan is an increase in the rate of value added tax (VAT). In this paper, we evaluate its impact on household expenditure, using Japan's April 1997 VAT rate increase from three to five percent as a case study. A rate increase induc... View more
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