The paper assesses the effects of a preexisting labor tax on the relative efficiency of a capital tax and a sales tax on the telecommunications sector. Public finance theory predicts that the efficiency costs of a sales tax increase when there is a preexisting labor tax, but the theory is...

This article uses an applied general equilibrium model to evaluate the relative efficiency of alternative indirect tax structures on the telecommunications sector. The article especially investigates the impact of imperfect competition in the sector’s product market on the efficiency...