Imperfect competition and the optimal combination of ad valorem and specific taxation
Tóm tắt
While it has long been recognized that under imperfect competition ad valorem and specific taxation differ in their effects, the optimal combination of the two instruments has received little attention. This paper shows how combining the two taxes can eliminate the welfare loss due to imperfect competition by inducing profit-maximizing firms to charge the appropriate Ramsey price.
Tài liệu tham khảo
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