VAT incidence in real VAT systems
研究了发展中国家增值税中基于企业规模的免税政策如何影响税负转嫁，发现免税不仅影响价格，还会扭曲产品质量，并以印度为例证实了这些机制的重要性。
This paper studies the price impacts of Value Added Tax (VAT) in the presence of size-based exemptions, which are set relatively high in the firm-size distribution in developing contexts. In addition to the standard determinants of tax incidence, we show that pass-through of VAT to consumer prices will depend on the substitutability of registered and unregistered varieties of taxed goods, on pass-through at upstream stages, and on the extent of segregation between registered and unregistered supply chains. The exemption can also distort the quality of goods produced. We show that these mechanisms are empirically important in the context of a VAT in India, where those who consume at unregistered firms nevertheless bear some of the tax burden.