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With non-competitive firms, a turnover tax can dominate the VAT

Author

Listed:
  • Arindam Das-Gupta

    (Independent)

Abstract

In an example with monopoly final and intermediate goods firms and substitutable primary and intermediate inputs, it is shown that there exist turnover taxes that yield more revenue than any feasible value-added tax. Second, simultaneously higher welfare, revenue and output are possible with the turnover tax.

Suggested Citation

  • Arindam Das-Gupta, 2005. "With non-competitive firms, a turnover tax can dominate the VAT," Economics Bulletin, AccessEcon, vol. 8(9), pages 1-6.
    • Handle: RePEc:ebl:ecbull:eb-05h20003
    as

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    File URL: http://www.accessecon.com/pubs/EB/2005/Volume8/EB-05H20003A.pdf
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    References listed on IDEAS

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    Cited by:

    1. Walter Cont & Diego Fernández Felices, 2016. "Multi-stage taxation by subnational governments: Tax incidence and Leviathan taxation," Department of Economics, Working Papers 108, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
    2. Walter Cont & Diego Fernández Felices, 2016. "Multi-stage taxation by subnational governments: Tax incidence and Leviathan taxation," IIE, Working Papers 108, IIE, Universidad Nacional de La Plata.
    3. Olena SOKOLOVSKA & Dmytro SOKOLOVSKYI, 2016. "Modeling Of Consumption Taxes For Different Market Framework: The Case Of Ukraine," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 50(4), pages 75-92.

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    More about this item

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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