Imperfect Competition and the Taxation of Intermediate Goods
It 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.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
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.
Volume (Year): 44 (1989)
Issue (Month): 1 ()
|Contact details of provider:|