-equilibrium model in which energy subsidies and other taxes in the economy are reduced in a revenue-neutral fashion. Two important … focus on taxation and subsidies. In order to understand the quite complex literature on this subject, we draw on the theory … formulation of similar policies in the future. That is the central purpose of the chapter. Section 2 examines subsidies in …

This paper shows that the welfare dominance of ad valorem over unit taxes under imperfect competition, extends to the …

welfare increases with the number of big firms because the pro-competitive effect associated with entry dominates the …

welfare increases with the number of big firms because the pro-competitive effect associated with entry dominates the …

firms and intra-industry reallocations. We show that the welfare superiority of ad valorem over unit taxes under imperfect … competition is not only preserved but amplified. The additional difference between the tools arises because unit taxes distort … share of lower productivity firms). Importantly, numerical solutions of the model reveal that the relative welfare loss from …

, which is generated by the exit of small firms. Furthermore, the level of social welfare increases with the number of …

than profit companies. From this follows that more funds for donations to nonprofit companies reduce the welfare to be …

This paper discusses welfare costs of a decrease in productivity and argues that there are two important channels which … cause a reduction in welfare: a decrease in output per firm (intensive margin) and a decrease in number of operating firms … argues that this channel should taken into account while calculating the loss of welfare due to a decrease in productivity …

Unlike previous theoretical studies, we examine the welfare effects of a merger when participating firms are in a … pollution-intensive sector. With passive environmental policy we show that profitable mergers reduce welfare; and this is … active policies we show that profitable mergers are welfare enhancing due to lower gross pollution, higher consumer surplus …