Blackorby, Charles; Murty, Sushama - Business School, University of Exeter - 2010
ad valorem taxes are not generally identical. But it does not imply that one completely dominates the other. Rather, the … percent profit taxation and uniform lump-sum transfers, the utility possibility sets of economies with unit and ad valorem … taxes are identical. This welfare-equivalence is in contrast to most previous studies, which demonstrate the superiority of …