This paper analyzes the problem of altering the cost structure within an oligopoly, in the presence of costs of manipulation. Oligopolistic firms (which differ from each other in production costs) compete a la Cournot in the second stage, taking as given firm-specific taxes or input prices. In...

We address the issue of income taxation in an overlapping generations model in which human capital accumulation has a positive externality. We compare the economy's performance in the steady state under different tax policies and life time horizons.