Tax Principles and Coordination of Trade and Domestic Policies under Imperfect Competition
AbstractWe construct an exporting monopoly model to compare destination- and origin-based commodity taxes in a context of a trade and domestic tax reform. We show that an export tax reduction and a change in destination (resp. origin) tax that fix the world price is strictly Pareto-improving (resp. deteriorating), which holds whether markets are integrated or segmented. This result may provide a new rationale for preferring the destination-based consumption tax to the origin-based production tax that has been discussed in the literature of tax harmonization and tax competition.
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Bibliographic InfoPaper provided by School of Economics, Kwansei Gakuin University in its series Discussion Paper Series with number 112.
Length: 21 pages
Date of creation: Nov 2013
Date of revision: Nov 2013
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More information through EDIRC
export tax; consumption tax; production tax; monopoly; strict Pareto improvement/deterioration;
Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
This paper has been announced in the following NEP Reports:
- NEP-ACC-2013-11-29 (Accounting & Auditing)
- NEP-ALL-2013-11-29 (All new papers)
- NEP-INT-2013-11-29 (International Trade)
- NEP-PBE-2013-11-29 (Public Economics)
- NEP-PUB-2013-11-29 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ishikawa, Jota, 1998.
"Foreign Monopoly and Trade Policy under Segmented and Integrated Markets,"
1998-03, Graduate School of Economics, Hitotsubashi University.
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- Takumi Naito & Kenzo Abe, 2008. "Welfare- and Revenue-Enhancing Tariff and Tax Reform under Imperfect Competition," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(6), pages 1085-1094, December.
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