Technology Choice and Unit vs Ad Valorem Tax

Francisco Galera (), Isabel Rodríguez-Tejedo () and Juan Carlos Molero
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Francisco Galera: School of Economics and Business Administration, University of Navarra
Isabel Rodríguez-Tejedo: School of Economics and Business Administration, University of Navarra
Authors registered in the RePEc Author Service: Isabel Rodriguez-Tejedo ()

No 18/12, Faculty Working Papers from School of Economics and Business Administration, University of Navarra

Abstract: This paper compares the effects of unitary and ad valorem taxes in a homogeneous good market where two technologies are freely available. We find that, both in monopolies and Cournot oligopolies, unit taxes may be welfare superior to ad valorem taxes.

Pages: 22 pages
Date: 2012-11-14
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