Scale Economies in Cross-Border Shopping and Commodity Taxation
A simple inventory theoretic model of cross-border shopping with transaction and storage costs is developed. Consumers incur fixed transaction and transportation costs to access the foreign market in which a perfect substitute of the domestic good is available. We show that the size of the optimal tax is inversely related to the size of domestic transactions. This result provides a simple example of a more general principle, that is, when there are increasing returns to scale in tax avoidance with respect to the quantities involved, then smaller transactions should be taxed more heavily than larger transactions. Copyright Kluwer Academic Publishers 1999
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Andreas Haufler, 1996.
"Tax coordination with different preferences for public goods: Conflict or harmony of interest?,"
International Tax and Public Finance,
Springer, vol. 3(1), pages 5-28, January.
- Haufler, Andreas, 1996. "Tax Coordination with Different Preferences for Public Goods: Conflict or Harmony of Interest?," Munich Reprints in Economics 20392, University of Munich, Department of Economics.
- Kanbur, Ravi & Keen, Michael, 1991. "Tax competition and tax coordination : when countries differ in size," Policy Research Working Paper Series 738, The World Bank.
- Harry Huizinga & Søren Bo Nielsen, .
"The Taxation of Interest in Europe: A Minimum Withholding Tax?,"
EPRU Working Paper Series
97-13, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Huizinga, H.P. & Nielsen, S.B., 1997. "The taxation of interest in Europe : A minimum withholding tax?," Discussion Paper 1997-73, Tilburg University, Center for Economic Research.
- Huizinga, H.P. & Nielsen, S.B., 1997. "The taxation of interest in Europe: A minimum withholding tax?," Discussion Paper 1997-73, .
When requesting a correction, please mention this item's handle: RePEc:kap:itaxpf:v:6:y:1999:i:1:p:89-99. See general 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: (Guenther Eichhorn)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.