Resource title

Tax Policy, Location Choices, and Market Structure

Resource image

image for OpenScout resource :: Tax Policy, Location Choices, and Market Structure

Resource description

A structural model of entry and fiscal policy is presented. It shows that taxation of variable production costs can increase product prices, lower competition, and reduce the availability of new products in small markets. The model?s test is based on a unique nationwide fiscal experiment. We study the effects of the 1869 stamped paper tax reform act on the market for daily newspapers in the Netherlands. The econometric analysis uses data on when and where the newspapers existed and were introduced together with demographic census data from 1859 and 1869. The results confirm the model?s predictions and show how taxation affects strategic business location decisions.

Resource author

Gerard A. Pfann, Hans van Kranenburg

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/21441

Resource license

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