Barriers to Trade and Imperfect Competition: The Choice of Commodity Tax Base

Andreas Haufler, Guttorm Schjelderup and Frank Stähler

International Tax and Public Finance, 2005, vol. 12, issue 3, 300 pages

Abstract: Recent work has started to analyze the choice of international commodity tax base under conditions of imperfect competition. This paper focuses on the effects of changing levels of trade barriers in a model where firms engage in duopoly competition and governments set commodity taxes non-cooperatively. It is shown that the consumption base (destination principle) dominates the production base (origin principle) when trade costs are high, but the ranking of the two tax bases is reversed for low levels of trade costs. We conclude that the case for origin-based commodity taxes becomes stronger when barriers to trade fall. Copyright Springer Science + Business Media, Inc. 2005

Keywords: commodity taxation; imperfect competition; strategic trade policy (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10797-005-0497-5 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Barriers to trade and imperfect competition: The choice of commodity tax base (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:itaxpf:v:12:y:2005:i:3:p:281-300

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/10797/PS2

DOI: 10.1007/s10797-005-0497-5

Access Statistics for this article

International Tax and Public Finance is currently edited by Ronald B. Davies and Kimberly Scharf

More articles in International Tax and Public Finance from Springer, International Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().