Tax Incidence, Market Power, and Bargaining Structure

Ben Lockwood

Oxford Economic Papers, 1990, vol. 42, issue 1, 187-209

Abstract: This paper considers the incidence of both factor taxes and an income/consumption tax in a general equilibrium model with unionized labor markets and imperfectly competitive product markets, focusing especially on the implications of different bargaining structures in the labor market for tax incidence. The determinants of tax incidence are shown to be very different from the competitive case; in particular, more than 100 percent shifting of general, as opposed to sector specific wage and income/consumption taxes is possible, and the shifting of the wage tax generally increases, rather than decreases, with the elasticity of substitution between labor and capital in production. Also, changes in firm market power and union bargaining power are shown to have counterintuitive effects on the degree of shifting of taxes. Copyright 1990 by Royal Economic Society.

Date: 1990
References: Add references at CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://links.jstor.org/sici?sici=0030-7653%2819900 ... CO%3B2-%23&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
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:oup:oxecpp:v:42:y:1990:i:1:p:187-209

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by James Forder and Francis J. Teal

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().