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Indirect Taxation, Public Pricing and Price Cap Regulation: a Synthesis

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  • Valentini, Edilio

Abstract

It is well known that many standard results on optimal taxation and tax reforms have a straightforward counterpart in the monopoly pricing context and the Ramsey-Boiteux pricing rule represents the most obvious and well known example of this connection. What is less acknowledged, maybe even by many regulatory economists, is that this parallelism exists also with respect to a number of properties that characterize some types of price cap regulation. This paper reviews the economic literature that explored such properties, showing that there is a strong parallelism between the price cap results that are surveyed in this paper and those originating from the well-established theories on optimal indirect taxation and tax reforms, as well as public pricing.

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  • Valentini, Edilio, 2013. "Indirect Taxation, Public Pricing and Price Cap Regulation: a Synthesis," MPRA Paper 50889, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:50889
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    More about this item

    Keywords

    Indirect taxation; public pricing; price cap regulation;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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