The incidence of nominal and real wage rigidity: an individual-based sectoral approach ECB Working Paper, No. 1213 Provided in Cooperation with: European Central Bank (ECB)Suggested Citation: Messina, Julián; Du Caju, Philip; Izquierdo, Mario; Duarte, Cláudia Filipa; Hansen, Niels Lynggård (2010) : The incidence of nominal and real wage rigidity: an individualbased sectoral approach, ECB Working Paper, No. 1213 Abstract 4 Non-technical summary 5 NOTE: This Working Paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB. WO R K I N G PA PE R S E R I E S N O 1213 / J U N E

This paper studies tax shifting of excise taxes on alcoholic and nonalcoholic beverages in Denmark. We use a unique data set collected by Statistics Denmark focusing on six episodes of tax changes: three tax cuts and three tax hikes. We find that excise taxes on beer and soda are overshifted but those on liquor are undershifted. We also find that the pass-through is inversely related to the size of the tax change and that there are asymmetric effects of tax changes on soda. Finally, the tax pass-through on beer and soda is an increasing function of the distance to the German border.

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Working Papers of Danmarks Nationalbank describe research and development, often still ongoing, as a contribution to the professional debate. Terms of use: Documents inThe viewpoints and conclusions stated are the responsibility of the individual contributors, and do not necessarily reflect the views of Danmarks Nationalbank.As a general rule, Working Papers are not translated, but are available in the original language used by the contributor. Danmarks Nationalbank's Working Papers are published in PDF format at www.nationalbanken.dk. A free electronic subscription is also available at this Web site.The subscriber receives an e-mail notification whenever a new Working Paper is published.Please direct any enquiries to Danmarks Nationalbank, Communications, Havnegade 5, DK-1093 Copenhagen K Denmark E-mail: kommunikation@nationalbanken.dkText may be copied from this publication provided that Danmarks Nationalbank is specifically stated as the source. Changes to or misrepresentation of the content are not permitted.Nationalbankens Working Papers beskriver forsknings-og udviklingsarbejde, ofte af foreløbig karakter, med henblik på at bidrage til en faglig debat.Synspunkter og konklusioner står for forfatternes regning og er derfor ikke nødvendigvis udtryk for Nationalbankens holdninger.Working Papers vil som regel ikke blive oversat, men vil kun foreligge på det sprog, forfatterne har brugt.Danmarks Nationalbanks Working Papers er tilgaengelige på www.nationalbanken.dk i pdf-format. På hjemmesiden er det muligt at oprette et gratis elektronisk abonnement, der leverer en e-mail notifikation ved enhver udgivelse af et Working Paper. ABSTRACT Overoptimism and house price bubblesThis paper explores the significance of overoptimism on house price developments in Denmark.The results indicate that house price developments historically have been partly driven by sentiments decoupled from underlying economic fundamentals, especially during strong house price booms. This underlines the need for a prudent macroeconomic stabilisation policy in periods with tight labour markets and a high degree of capacity utilisation. The paper is based on both aggregated data from the Danish Consumer Expectations Survey as well as the underlying household-level microdata behind the survey matched with administrative register data at a household level. This is the first paper that combines the use of all these three types of data. The macroeconometric part of the paper uses a stand...

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractThe present paper offers a careful description of empirical identification of possible multiple changes in regime. We apply recently developed tools designed to select between regime-switching models among a broad class of linear and nonlinear regression models and provide a discussion of the impact on the formation of inflation expectations in the presence of multiple and recurrent changes in inflation regimes. Our empirical findings give a plausible explanation as to why the rationalexpectation hypothesis based on direct measures of inflation expectations from survey series is typically rejected due to large systematic differences between actual and expected inflation rates. In particular, our results indicate that in the case of changing and not perfectly observed inflation regimes, inference about rationality

The incidence of nominal and real wage rigidity: an individual-based sectoral approach ECB Working Paper, No. 1213 Provided in Cooperation with: European Central Bank (ECB)Suggested Citation: Messina, Julián; Du Caju, Philip; Izquierdo, Mario; Duarte, Cláudia Filipa; Hansen, Niels Lynggård (2010) : The incidence of nominal and real wage rigidity: an individualbased sectoral approach, ECB Working Paper, No. 1213 Abstract 4 Non-technical summary 5 NOTE: This Working Paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB. WO R K I N G PA PE R S E R I E S N O 1213 / J U N E