Effect of value added tax rate changes on market equilibrium
added tax (VAT) rate changes on market equilibrium. The article examines a model developed
by the authors allowing to forecast the effect of the VAT rate changes on the market price, sales
amount and other indicators. The basic model structure along with the main formulae derived
from the model is examined in the article; the practical model approbation discussed. The latter
considered outcomes of the model implementation for assessing the effect of the rate reduction
of VAT on food in Latvia.
Article in: English
Published on-line: 2008-06-10
Keyword(s): Value added tax (VAT), market equilibrium, food consumption
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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355
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