Taxation and the Control of International Oligopoly
AbstractThe paper shows how the differing incidence of specific and ad valorem taxation in imperfectly competitive markest can be exploited to control international oligopoly. If countries act cooperatively, the tax instruments used in combination achieve the same outcome, either the first-best or the constrained second-best, as direct production control. When a single country regulates the oligopoly, circumstances are shown to exist in which taxation is superior to production control.
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Bibliographic InfoPaper provided by Exeter University, Department of Economics in its series Discussion Papers with number 9506.
Length: 18 pages
Date of creation: 1995
Date of revision:
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Find related papers by JEL classification:
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
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