Kroft, Kory; Laliberté, Jean-William; Leal Vizcaíno, René - 2023
We develop a theory of commodity taxation featuring imperfect competition along with love-of-variety preferences and … application. Our welfare analysis shows that the marginal excess burden of taxation is very sensitive to the estimated love …-of-variety, which can overturn classical results on the desirability of ad valorem versus specific taxation …