Firm taxation and the endogenous distribution of markups

John Dalton () and Turkmen Goksel

Economics Letters, 2013, vol. 121, issue 3, 520-523

Abstract: Melitz and Ottaviano (2008) predicts a monotonic relation between productivity and markups. When including revenue taxes, however, this relation is non-monotonic and depends on taxes. Even without taxes, productivity and markups can be non-monotonic depending on how non-homotheticity is modeled.

Keywords: Taxes; Variable markups; Heterogeneous firms; Non-homothetic preferences (search for similar items in EconPapers)
JEL-codes: E62 H32 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:121:y:2013:i:3:p:520-523

DOI: 10.1016/j.econlet.2013.10.010

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