Donder, Philippe de; Cremer, Helmuth; Dudley, Paul; … - In: Review of Network Economics 8 (2009) 3, pp. 233-254
We study the pricing and welfare implications of changing the VAT status of the national postal operator (NPO) from exempt to rated. We build a model where the NPO offers both single-piece and bulk mail to customers, some of them VAT rated, others VAT exempt. We solve for the optimal Ramsey...