Intergovernmental grants are not available to all federations. In this paper, optimal federal tax policies in a multileveled government framework are studied, when the federal authority has no access to intergovernmental grants, and the state governments implement the residence principle. A...

This paper derives optimal commodity tax rules for general equilibrium models with imperfect competition. This is achieved by constructing functions for each imperfectly competitive industry describing the effect of taxation upon prices and profits, the construction is applicable to most forms...

The combined use of specific and ad valorem taxation as a policy response to the welfare losses caused by international oligopoly is explored. With Nash competition between countries, taxation is inferior to quantity control. In contrast, when countries cooperate production control and taxation...

We analyze the choice between the origin and destination principles of taxation when there is product differentiation and Bertrand competition. If taxes are redistributed to consumers and demand is linear the origin principle dominates the destination principle whatever the degree of product...