arbiter
JournalsPricingAccount

Who pays for a VAT hike at an international border?

Emmanuel Chávez & Cristóbal Domínguez-Borbor

Fiscal Studies2025https://doi.org/10.1111/1475-5890.12400article
AJG 2ABDC B
Weight
0.50

What the paper says

This research studies the effects of a value added tax (VAT) reform that raised the rate from 11 to 16 per cent at localities close to international borders in Mexico. Using difference‐in‐differences, we find that the VAT hike increased prices by one‐third the size of the full‐passthrough counterfactual. Moreover, we find that workers absorbed part of the VAT hike, as the reform had a negative effect on workers’ compensation. Informality, competition across the border, worker mobility and earnings level drive the effects we find.

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.1111/1475-5890.12400

Or copy a formatted citation

@article{emmanuel2025,
  title        = {{Who pays for a VAT hike at an international border?}},
  author       = {Emmanuel Chávez & Cristóbal Domínguez-Borbor},
  journal      = {Fiscal Studies},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1111/1475-5890.12400},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Who pays for a VAT hike at an international border?

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.