Imperfect Competition and the Taxation of Intermediate Goods
AbstractIt is an implication of the productive efficiency lemma of P. A. Diamond and J. A. Mirrlees that intermediate goods should not be taxed in a world of constant returns to scale and perfect competition. Three simple models are analyzed to examine whether this conclusion can be extended to accommodate imperfect competition. The importance of returns to scale and the form of the production function are emphasized and, where applicable, welfare-improving and optimal tax schemes are described that include taxes on intermediate goods. If all technologies are Leontief, productive efficiency remains desirable.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by in its journal Public Finance = Finances publiques.
Volume (Year): 44 (1989)
Issue (Month): 1 ()
Contact details of provider:
Other versions of this item:
- Myles, G.D., 1989. "Imperfect Competition And The Taxation Of Intermediate Goods," The Warwick Economics Research Paper Series (TWERPS) 315, University of Warwick, Department of Economics.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Horacio L. P. Piffano, 2007. "Argentina and Brazil: Fiscal Harmonization and Subnational Sales Taxation – State / Provincial VAT versus State / Provincial Retail Sales Tax," Department of Economics, Working Papers 069, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
- Ahlberg, Joakim, 2006. "Optimal Taxation of Intermediate Goods in the Presence of Externalities: A Survey Towards the Transport Sector," Working Papers 2006:3, Swedish National Road & Transport Research Institute (VTI).
- Lockwood, Ben, 2003.
"Imperfect competition, the marginal cost of public funds and public goods supply,"
Journal of Public Economics,
Elsevier, vol. 87(7-8), pages 1719-1746, August.
- Lockwood, Ben, 1996. "Imperfect competition, the marginal cost of public finds and public goods supply," Discussion Papers 9610, Exeter University, Department of Economics.
- Kul B. Bhatia, 1999.
"Tax Incidence with Three Goods and Two Primary Factors: Theory and Applications,"
UWO Department of Economics Working Papers
9914, University of Western Ontario, Department of Economics.
- Bhatia, Kul B, 1998. "Tax Incidence with Three Goods and Two Primary Factors: Theory and Applications," Public Finance = Finances publiques, , vol. 53(2), pages 123-44.
- Giuseppe Colangelo & Umberto Galmarini, 2001. "Ad Valorem Taxation on Intermediate Goods in Oligopoly," International Tax and Public Finance, Springer, vol. 8(1), pages 53-73, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.