This contribution investigates the effectiveness and welfare implications of fiscal policies in a context of multilateral trade, when traders behave strategically. The present approach deals simultaneously with two aspects of fiscal policies: collecting resources for redistributive purposes and...

This paper compares the welfare effects of ad valorem and per unit commodity taxation, in a model of oligopolistic interaction. Our main result is that, when the number of consumers is sufficiently high, per unit taxes welfare dominate ad valorem taxes.