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Commodity Taxation in A Differentiated Oligopoly
Oleh:
Thisse, Jacques-Francois
;
Cremer, Helmuth
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
INTERNATIONAL ECONOMIC REVIEW vol. 35 no. 3 (1994)
,
page 613-634.
Topik:
TAXATION
;
commodity taxation
;
oligopoly
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
II49.4
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
We introduce commodity taxation into a vertical differentiation model with endogenous product selection. We show that a uniform ad valorem tax lowers both qualities, distorts the allocation of consumers between firms and lowers the consumer prices of both variants. A small uniform tax is always welfare - improving over the no - tax equilibrium. A differentiation of tax rates may - or may not be desirable on welfare grounds. If a welfare improvement is possible through a nonuniform tax, it is always the high - quality variant which must be taxed at a higher rate.
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