Resource title

Commodity Taxation and Parallel Imports

Resource image

image for OpenScout resource :: Commodity Taxation and Parallel Imports

Resource description

We examine the interaction between commodity taxes and parallel imports in a simple two-country model with imperfect competition. While governments determine non-cooperatively their commodity tax rate, the volume of parallel imports is determined endogenously by the retailing sector. We compare the positive and normative implications of having commodity taxes based on destination or origin principle. Origin taxes are shown to have very attractive properties: they lead to lower levels of optimal taxes, they converge as parallel imports increase (while destination taxes diverge), and they lead to higher welfare levels.

Resource author

Nicolas Schmitt, Pascalis Raimondos-Møller

Resource publisher

Resource publish date

Resource language

eng

Resource content type

application/pdf

Resource resource URL

http://hdl.handle.net/10398/7538

Resource license

Check the according license before adaptation. When adapting give credits to the original author.