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A Welfare and Pass-Through Effects of Regulations within Imperfect Competition

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  • Alali, Walid Y
  • Ellalee, Haider

Abstract

This paper furnishes an inclusive framework to examine the welfare effects of the interventions of multiple policies, and other exterior alterations under imperfect competition and an assertion on particular and .the leading case of the ad valorem taxes. In particular, for the tax pass-through, we furnish ‘‘sufficient statistics” equations for measures of the two welfare under the demand of the impartially general class, market competition and production cost. The measures are i) Public fund of the marginal value, ii) Incidence. We start with the status of symmetric firms' face up with both ad valorem taxes and unit tax to derive an empirically pertinent set of formulas and simple. Next, we make a substantial generalization of these results to include firm heterogeneity using the idea of tax revenue defined as a public function defined by a vector of policy instruments including governmental and non-governmental interventions and other non-tax costs.

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  • Alali, Walid Y & Ellalee, Haider, 2022. "A Welfare and Pass-Through Effects of Regulations within Imperfect Competition," EconStor Preprints 268756, ZBW - Leibniz Information Centre for Economics.
  • Handle: RePEc:zbw:esprep:268756
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    More about this item

    Keywords

    Imperfect Competition; Pass-through; Marginal Value of Public; Funds; Incidence; Sufficient Statistics;
    All these keywords.

    JEL classification:

    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics
    • D6 - Microeconomics - - Welfare Economics
    • F3 - International Economics - - International Finance

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