This paper provides evidence that prices respond significantly more strongly to increases than to decreases in value-added taxes (VATs). First, using two plausibly exogenous VAT changes, we show that prices respond twice as much to VAT increases as to VAT decreases. Second, we show that this asymmetry results in higher equilibrium profits and markups. Third, we find that firms operating with low profit margins are particularly likely to respond asymmetrically to VAT changes. Fourth, these asymmetric price effects persist several years after VAT changes take place. Fifth, using all VAT changes in the European Union from 1996 to 2015, we find similar levels of asymmetry.

中文翻译：

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升不降：增值税的不对称发生率。

本文提供的证据表明，价格对增值税 (VAT) 增加的反应比对减少的反应更强烈。首先，使用两个看似合理的外生增值税变化，我们表明价格对增值税增加的反应是对增值税减少的两倍。其次，我们表明这种不对称导致更高的均衡利润和加价。第三，我们发现利润率低的公司特别可能对增值税变化做出不对称的反应。第四，这些不对称的价格效应在增值税发生变化后仍会持续数年。第五，使用欧盟从 1996 年到 2015 年的所有增值税变化，我们发现了类似的不对称程度。