Dröge, Susanne; Schröder, Philipp J. H. - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2005
The ad valorem versus unit taxes debate has traditionally emphasized tax yield. For this criterion, ad valorem taxes outperform unit taxes in terms of welfare for a wide range of imperfect competition settings, including Dixit-Stiglitz monopolistic competition. Yet, in a number of policy fields,...