Rate of Return Taxation of Minerals

Nancy Olewiler

Working Paper from Economics Department, Queen's University

Abstract: A short run model of a nonrenewable resource firm, the mine, is used to analyze the allocative efficiency of the application of a rate-of-return profits tax which has no distortive effects on input or output decisions of the firm at the margin. The rate-of-return tax is generally found to lead to inefficient use of capital, an increase in firm and industry output, and a decrease in the ore quality of mines operating at the margin compared to the neutral tax. Manitoba's rate-of-return mining tax is evaluated and shown to lead to capital bias.

Pages: 21
Date: 1978
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:qed:wpaper:317

Access Statistics for this paper

More papers in Working Paper from Economics Department, Queen's University Contact information at EDIRC.
Bibliographic data for series maintained by Mark Babcock ().