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Persistent link: https://www.econbiz.de/10008776502
This paper shows that the welfare dominance of ad valorem over unit taxes under imperfect competition, extends to a Dixit-Stiglitz-type monopolistic competition framework with differentiated products, increasing returns to scale, entry/exit and love of variety. This result is obtained, even...
Persistent link: https://www.econbiz.de/10010987604