Autor: Silveira Moreira Miguel*, Pontual Ribeiro Eduardo**
Institución: (*)Ecoa Economic Consulting, (**)Universidade Federal do Rio de Janeiro
Año: 2025
JEL: H22, H25
Resumen:
This paper estimates both long run and short run possibly asymmetric pass-through of sales tax changes, using a novel identification methodology from ICMS tax withholding or ``substituição tributária'' of gasoline prices in Brazil. The estimates show that there is no anticipation of tax changes, even if new taxes in Reals are publicized in advance. The empirical results indicate possibly asymmetric pass-though of taxes to prices, but with the positive and negative effects very close to one and time varying. The tax appears to be fully shifted.