Unit Versus Ad Valorem Taxes: Monopoly In General Equilibrium

We show that if a monopoly sector is imbedded in a general equilibrium framework and profits are taxed at one hundred percent, then unit (specific) taxation and ad valorem taxation are welfare-wise equivalent. This is contrary to all known claims.


Issue Date:
Feb 02 2006
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/269731
Language:
English
Total Pages:
18
JEL Codes:
H21




 Record created 2018-03-21, last modified 2018-03-21

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