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-valorem taxes. We show that (i) a monopoly may have too high output compared to the social optimum; (ii) output may be reduced by …
Persistent link: https://www.econbiz.de/10012772273
We analyze the incidence and welfare effects of unit sales taxes in experimental monopoly and Bertrand markets. We find …, in line with economic theory, that firms with no market power are able to shift a high share of a tax burden on to … consumers, independent of whether buyers are automated or human players. In monopoly markets, a monopolist bears a large share …
Persistent link: https://www.econbiz.de/10013149368
Two-sided platform firms serve distinct customer groups that are connected through interdependent demand, and include major businesses such as the media industry, banking, and the software industry. A well known textbook result in one-sided markets is that a government may increase a...
Persistent link: https://www.econbiz.de/10013317276
This paper extends the Mirrlees (1971) model of optimal income redistribution with optimal corrective taxes to internalize consumption externalities. It is demonstrated that the optimal second-best tax on an externality-generating good should not be corrected for the marginal cost of public...
Persistent link: https://www.econbiz.de/10013093870
Optimal climate policy is studied. Coal, the abundant resource, contributes more CO2 per unit of energy than the exhaustible resource, oil. We characterize the optimal sequencing oil and coal and departures from the Herfindahl rule. “Preference reversal” can take place. If coal is very dirty...
Persistent link: https://www.econbiz.de/10013316099
In a group of countries like the European Union all countries seek to achieve their national CO2 emissions target by a joint emissions trading scheme covering some part of their economies (trading sector) and by a national emissions tax in the rest of their economies (nontrading sector)....
Persistent link: https://www.econbiz.de/10013317104
This paper highlights the potential for joint OECD (or non-OPEC) carbon taxes to reduce OPEC's monopoly rent and … theory, the primary purpose of a carbon tax is to internalize a global negative externality. A second benefit for individual … the supplier's price of oil, thus decreasing non-OPEC countries' oil demand, and transferring OPEC monopoly rent to non …
Persistent link: https://www.econbiz.de/10013095719
This paper presents the first investigation of the effects of optimal energy taxation in an urban spatial setting. Rather than exploring the effects of a carbon tax, our approach is to derive the supplements to existing taxes that are needed to support the social optimum. We then analyze the...
Persistent link: https://www.econbiz.de/10012998679
This paper shows that the fiscal multiplier for purchases of durable and investment goods is very small - much smaller than the multiplier for nondurable goods. Standard models predict small durables multipliers because private sector purchases of durable goods are highly intertemporally...
Persistent link: https://www.econbiz.de/10012964609
This paper proposes a theory of commodity taxation in the presence of durable goods. Optimal commodity taxes depend on … theory justifies housing provisions in the income tax code …
Persistent link: https://www.econbiz.de/10013028778