The Comparison between Ad Valorem and Unit Taxes under Monopolistic Competition
No 333, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research
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)
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Journal Article: The Comparison between Ad Valorem and Unit Taxes under Monopolistic Competition (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwwpp:dp333
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