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 InfoPaper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 315.
Length: 16 pages
Date of creation: 1989
Date of revision:
competition ; taxation ; intermediate goods ; efficiency;
Other versions of this item:
- Myles, Gareth D, 1989. "Imperfect Competition and the Taxation of Intermediate Goods," Public Finance = Finances publiques, , vol. 44(1), pages 62-74.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- 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.
- 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.
- 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.
- 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.
- 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).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helen Neal).
If references are entirely missing, you can add them using this form.