The Comparison between Ad Valorem and Unit Taxes under Monopolistic Competition

Philipp Schröder

No 333, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: This paper shows that the welfare dominance of ad valorem over unit taxes under imperfect competition, extends to the Dixit-Stiglitz framework with differentiated products, entry and love of variety. This contrasts against findings by Anderson et al. (J Public Econ, 2001) made in a similar framework, but under Bertrand competition.

Keywords: Unit tax; Specific tax; Ad valorem tax; Welfare (search for similar items in EconPapers)
JEL-codes: D43 H21 H22 L13 (search for similar items in EconPapers)
Pages: 10 p.
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: The Comparison between Ad Valorem and Unit Taxes under Monopolistic Competition (2004)
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