A trade and domestic tax reform in imperfectly competitive markets

This paper develops a model of an export oligopoly to examine the welfare effects of an export tax reduction and a production tax increase that makes the foreign country no-worse off. Whether or not entry into the oligopolistic industry is free, the proposed policy reform is shown to reduce welfare of the policy-implementing country and the world. Relating this result to the perfectly competitive case, we closely discuss its implications.

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Year of publication:	2013-01
Authors:	Fujiwara, Kenji ; Kitamura, Ryoma
Institutions:	School of Economics, Kwansei Gakuin University
Subject:	welfare \| export tax \| production tax \| restricted entry \| free entry

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Extent:	application/pdf
Series:	Discussion Paper Series.
Type of publication:	Book / Working Paper
Notes:	Number 99 25 pages
Classification:	F12 - Models of Trade with Imperfect Competition and Scale Economies ; F13 - Commercial Policy; Protection; Promotion; Trade Negotiations
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010604305