IDEAS home Printed from
   My bibliography  Save this paper

Optimal Commodity Taxation with Imperfect Competition


  • Myles, G. D.


This paper derives optimal commodity tax rules for general equilibrium models with imperfect competition. This is achieved by constructing functions for each imperfectly competitive industry describing the effect of taxation upon prices and profits, the construction is applicable to most forms of imperfect competition. Intermediate goods prices appear as important determinants of tax rates and it is shown that the implication of Diamond-Mirrlees theorem, that intermediate goods remain untaxed, is inapplicable when the competitive assumption is relaxed.

Suggested Citation

  • Myles, G. D., 1987. "Optimal Commodity Taxation with Imperfect Competition," The Warwick Economics Research Paper Series (TWERPS) 280, University of Warwick, Department of Economics.
  • Handle: RePEc:wrk:warwec:280

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wrk:warwec:280. 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: (Margaret Nash). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.