Keuschnigg, Christian (contributor) - 2006
, 2005, and Helpman, Melitz and Yeaple, 2004, among others).
We develop a much simplified, probabilistic version of the …−t
1−et
. (3.1)
The EMTR relates gross and net returns by r =(1−t
m
)u and summarizes all relevant
parameters of the tax … monopolist must cut back sales and invests less. By the demand
curve in (2.4),
ˆ
k = −ε · ˆu = −ε ·
ˆ
t
m
. (3.5)
18
The firm …