Resource title

Market structure and the taxation of international trade

Resource image

image for OpenScout resource :: Market structure and the taxation of international trade

Resource description

The paper compares non-cooperative commodity taxation under the destina- tion and origin principles under a variety of different assumptions about market structure. We consider a model of international duopoly with either quantity or price competition of firms and either segmented or integrated markets, and a mo- nopolistic competition model with mobile firms. In each setting the international spillovers of tax policy are isolated and evaluated at the Pareto efficient tax rate. The sign of the net spillover, and thus the direction that commodity tax com- petition will take, depends critically on whether lump-sum taxes are available or commodity taxes must be used to finance the government budget.

Resource author

Michael Pflüger, Andreas Haufler

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/18127

Resource license

Adapt according to the presented license agreement and reference the original author.