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Sponsoring culture is a long-term profit-generating investment that public policy makers can achieve by means of Pigouvian subsidy or tax schemes. This paper evaluates the effectiveness of the three VAT reforms implemented between 2012 and 2018 (one tax raise reform and two tax cut reforms) in the cultural sector in Spain. We first provide visual evidence and empirical estimates of the tax shifting and the distribution of the VAT burden between consumers and producers. We then use a regression discontinuity design to assess the causal effects of these VAT reforms on performing acts and cinema consumption (both in the extensive and the intensive margin). Several interesting findings arise from our results. First, we find that producers only passed through 45% of the VAT cut to consumer prices. Second, the effect of the 2017 VAT reduction on performing arts slightly increased the number of households consuming these cultural services, whereas the 2018 tax cut on cinema had no significant effect in the number of moviegoers (extensive margin). Third, the cultural spending per household conditional on participation (intensive margin) increased after the two VAT rate reductions. Finally, we test for asymmetries in pass-through with respect to the 2012 tax raise and we find (i) no evidence of prices responding more strongly to increases than to decreases in VAT, (ii) a symmetric response of the number of households consuming these cultural services, and (iii) an asymmetric response of the average cultural spending conditional on participation. [ABSTRACT FROM AUTHOR]

Background: Over the last two decades, the rise in opioid prescription has worsened health outcomes worldwide, increasing both levels of abuse and mortality rates. In order to reduce the scale of this public health problem, new policies have been implemented in many countries. In 2012, Spain adopted new legislation on opioid prescription (the ROE law), which meant that practitioners no longer needed to obtain extra authorisation in order to prescribe strong opioids. The objective of the paper is to assess the impact of this law on opioid use and abuse in Catalonia, Spain.Methods: We established two measures of the use of strong and weak opioids: DDDs, and abuse. We used benzodiazepines and antidepressants as controls, and adjusted for age, sex, drug co-payment level, death or near death, cancer diagnosis, morbidity group, and type of prescription. The data were obtained from administrative and dispensing drug databases in a population of 7.5 million inhabitants. We estimated two-way fixed effects using difference in difference models.Results: The ROE law impacted reducing the monthly use of strong opioids by 0.903 DDDs, representing a 3.15% decrease in the mean monthly use of strong opioids. However, abuse rose 1.86 times compared with the average pre-ROE value, which represents an increase of 11,190 months of opioid abuse (i.e., an 11.33% of all monthly opioids use).Conclusion: The abolition of the duplicate prescription programme for strong opioids led to a reduction in the average monthly use of strong opioids, but an increase in abuse. [ABSTRACT FROM AUTHOR]