The Comparison between Ad Valorem and Unit Taxes under Monopolistic Competition

This paper shows that the welfare dominance of ad valorem over unit taxes under imperfect competition, extends to the Dixit-Stiglitz framework with differentiated products, entry and love of variety. This contrasts against findings by Anderson et al. (J Public Econ, 2001) made in a similar framework, but under Bertrand competition.

MoreLess

Year of publication:	2003
Authors:	Schröder, Philipp J. H.
Institutions:	DIW Berlin (Deutsches Institut für Wirtschaftsforschung)
Subject:	Unit tax \| Specific tax \| Ad valorem tax \| Welfare

More details

Extent:	application/pdf
Series:	Discussion Papers of DIW Berlin. - ISSN 1619-4535.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 333 10 pages long
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; H21 - Efficiency; Optimal Taxation ; H22 - Incidence ; L13 - Oligopoly and Other Imperfect Markets
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004963604