A Comment on “The Heterogeneous Tax Pass-Through Under Different Vertical Relationships” by Bajo-Buenestado and Borrella-Mas
Clicks: 5
ID: 325015
2026
Article Quality & Performance Metrics
Overall Quality
Not rated
Combines reader engagement with the AI quality analysis. This
article has not been analysed, so there is no overall score —
reader engagement is measured and shown alongside.
Reader Engagement
Emerging Content
0.3
/100
5 views
0 readers
AI Quality Assessment
Not analyzed
Readership in this journal
EmergingRanked #16 of 264 articles by views in the economic journal
Most read
Least read
Bar heights use a square-root scale. Only the 120 most-read articles are drawn; the journal has 264 in total.
Mint this article as an NFT
Not yet mintedCreate a permanent, verifiable on-chain record of this article on the Scimatic Network. The NFT is held in your Journament account, and you can withdraw it to your own wallet at any time.
5
SUSD
one-off · no wallet required
Abstract
Abstract We revisit the heterogeneous tax pass-through analysis in Borrella-Mas (2022a) (B&B). We find that B&B’s estimating equation is misspecified, as it excludes a necessary lower-order interaction between vertical integration and the post-treatment period. Including this term reveals a significant structural price trend for vertically integrated firms in the post-reform period, whose origin is uncertain. A spatial placebo test confirms that this structural shift is present even in never-treated provinces, indicating that it is not a local, province-level pass-through of the regional tax. Without this control, the original specification may conflate this shift with the tax effect. Once the interaction is included, the differential pass-through estimate becomes null for diesel, while for gasoline a significant effect persists—albeit at a reduced magnitude—supporting B&B’s central claim that market structure matters for tax pass-through. These findings highlight the importance of explicitly modelling group-specific time trends when estimating heterogeneous treatment effects in difference-in-differences designs.
| Reference Key |
openalex_W7203496051
Use this key to autocite in the manuscript while using
SciMatic Manuscript Manager or Thesis Manager
|
|---|---|
| Authors | Ismail El Fassi, Saleh Zakerinia |
| Journal | the economic journal |
| Year | 2026 |
| DOI |
10.1093/ej/ueag101
|
| URL | |
| Keywords | Keywords not found |
Citations
No citations found. To add a citation, contact the admin at info@scimatic.org
Comments
No comments yet. Be the first to comment on this article.