Abstract
More than two decades ago Statistics Netherlands started the construction of consumer price indexes excluding tax changes. At the latest index revision, the method has been changed. The present paper gives an elaboration of the principles behind the computation of the current Netherlands net price index and presents empirical results for the period 1990--1996. A distinction is made between direct tax effects due to changes in taxes levied on consumer goods and services, and indirect effects resulting from changes in taxes levied on intermediate products used in the production processes of enterprises. The indirect effects, estimated with the help of (cumulated) input-output coefficients, appear to be quite small as compared to the direct effects.
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