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.

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Year of publication:	2003
Authors:	Schröder, Philipp J. H.
Publisher:	Berlin : Deutsches Institut für Wirtschaftsforschung (DIW)
Subject:	Umsatzsteuer \| Verbrauchsteuer \| Monopolistischer Wettbewerb \| Wohlfahrtseffekt \| Theorie \| Unit tax \| Specific tax \| Ad valorem tax \| Welfare

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Series:	DIW Discussion Papers ; 333
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	849566355 [GVK] hdl:10419/18069 [Handle] RePEc:diw:diwwpp:dp333 [RePEc]
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; L13 - Oligopoly and Other Imperfect Markets ; H22 - Incidence ; H21 - Efficiency; Optimal Taxation
Source:	EconStor

Persistent link: https://www.econbiz.de/10010276547