Tax Principles and Coordination of Trade and Domestic Policies under Imperfect Competition
We construct an exporting monopoly model to compare destination- and origin-based commodity taxes in a context of a trade and domestic tax reform. We show that an export tax reduction and a change in destination (resp. origin) tax that fix the world price is strictly Pareto-improving (resp. deteriorating), which holds whether markets are integrated or segmented. This result may provide a new rationale for preferring the destination-based consumption tax to the origin-based production tax that has been discussed in the literature of tax harmonization and tax competition.
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- Jota Ishikawa & Hiroshi Mukunoki, 2008. "Spillover Effects Of Economic Integration In A Three-Country Model," The Japanese Economic Review, Japanese Economic Association, vol. 59(2), pages 211-227.
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"Foreign Monopoly and Trade Policy under Segmented and Integrated Markets,"
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- Jota Ishikawa, 2004. "From Segmented Markets to Integrated Markets: an Analysis of Economic Integration and Antidumping Legislation," Review of International Economics, Wiley Blackwell, vol. 12(4), pages 706-722, 09.
- Takumi Naito & Kenzo Abe, 2008. "Welfare- and Revenue-Enhancing Tariff and Tax Reform under Imperfect Competition," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(6), pages 1085-1094, December.
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