Tax Policy and Market Structure
AbstractA structural model of entry and taxation is presented to explain the changes in market structure resulting from the 1869 stamped paper tax reform act that abolished taxation on paper used for advertising and publishing news in the Netherlands. Data on when and where the newspapers existed and were introduced together with demographic census data are used to test the model. We find that the production-costs-reducing tax cut lowered the average market size necessary for profitable first entry and changed the competitive conduct allowing competition to grow in locally concentrated markets with sufficient potential demand. The paper's results are valuable to any policy related discussion on the effects of taxation and entry limitation on market structures and the development of new industries such as wireless telecommunication and e-businesses.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Harris School of Public Policy Studies, University of Chicago in its series Working Papers with number 0022.
Date of creation: Oct 2000
Date of revision:
tax policy; entry limitation;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eleanor Cartelli) The email address of this maintainer does not seem to be valid anymore. Please ask Eleanor Cartelli to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.