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Household-Consumption
Household-Consumption
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Review of Economic Studies
10 Jun 2026
A Temporary VAT Cut as Unconventional Fiscal PolicyRüdiger Bachmann · Benjamin Born · Olga Goldfayn-Frank · Georgi Kocharkov · Ralph Luetticke · Michael Weber
The paper studies Germany’s temporary 3 percentage-point VAT cut from July 1 to December 31, 2020 (standard rate 19%→16%, reduced rate 7%→5%), combining two causal identification strategies with …