TY - GEN
T1 - Do governments effectively stabilize fuel prices by reducing specific taxes? Evidence from Italy
AU - Di Giacomo, Marina
AU - Piacenza, Massimiliano
AU - Turati, Gilberto
PY - 2011
Y1 - 2011
N2 - After the sharp increase of oil prices experienced in recent years, in order to stabilize fuel prices, many countries experimented automatic fiscal mechanisms consisting of a one-to-one reduction in specific taxes matching the rise in input prices. This study investigates the impact of these mechanisms on wholesale gasoline and motor diesel prices. Our estimates highlight that fiscal sterilization brings about a rise in final wholesale prices that more than compensate reduction in taxes. Hence, these "flexible" taxation mechanisms could not be a proper policy for stabilizing price levels in fuel markets.
AB - After the sharp increase of oil prices experienced in recent years, in order to stabilize fuel prices, many countries experimented automatic fiscal mechanisms consisting of a one-to-one reduction in specific taxes matching the rise in input prices. This study investigates the impact of these mechanisms on wholesale gasoline and motor diesel prices. Our estimates highlight that fiscal sterilization brings about a rise in final wholesale prices that more than compensate reduction in taxes. Hence, these "flexible" taxation mechanisms could not be a proper policy for stabilizing price levels in fuel markets.
UR - https://www.scopus.com/pages/publications/84888270236
U2 - 10.1007/978-3-642-11363-5_11
DO - 10.1007/978-3-642-11363-5_11
M3 - Conference contribution
SN - 9783642113628
T3 - Studies in Classification, Data Analysis, and Knowledge Organization
SP - 93
EP - 100
BT - New Perspectives in Statistical Modeling and Data Analysis - Proceedings of the 7th Conference of the Classification and Data Analysis Group of the Italian Statistical Society
T2 - 7th Biannual Meeting of the Classification and Data Analysis Group, CLADAG 2009
Y2 - 9 September 2009 through 11 September 2009
ER -