PRODUCT DIVERSITY, DEMAND STRUCTURES, AND OPTIMAL TAXATION.
This article studies optimal taxation in a general equilibrium macroeconomic model with endogenous entry. We compare the constant elasticity of substitution ( CES) model to three alternative demand structures: oligopolistic competition in prices, oligopolistic competition in quantities, and translog...
| Publicado en: | Economic Inquiry Vol. 53; no. 2; pp. 979 - 1004 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Apr2015
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=100824353&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 100824353 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: Y pubinfo: dt: Apr2015 vid: 53 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 100824353 10.1111/ecin.12159 ppf: 979 ppct: 25 formats: fmt: – @attributes: type: T – @attributes: type: P size: 979KB tig: atl: PRODUCT DIVERSITY, DEMAND STRUCTURES, AND OPTIMAL TAXATION. aug: au: Lewis, Vivien Winkler, Roland affil: Assistant Professor, KU Leuven, Center for Economic Studies, Naamsestraat 69, 3000 Leuven Belgium Junior Professor, TU Dortmund University, Faculty of Business, Economics, and Social Sciences, Vogelpothsweg 87, 44221 Dortmund Germany su: Taxation Macroeconomics Market entry Cost Tax research sug: subj: Taxation Macroeconomics Market entry Cost Public Finance Activities Tax research ab: This article studies optimal taxation in a general equilibrium macroeconomic model with endogenous entry. We compare the constant elasticity of substitution ( CES) model to three alternative demand structures: oligopolistic competition in prices, oligopolistic competition in quantities, and translog preferences. Our economy is characterized by two distortions: a labor distortion due to the misalignment of markups on goods and leisure, and an entry distortion due to the misalignment of the consumer surplus effect and the profit destruction effect of entry. The two distortions interact in determining the wedge between the market-driven and optimal level of product diversity. We show how optimal labor and entry taxes depend on the prevailing demand structure, the nature and size of entry costs, and the degree of substitutability between goods. ( JEL E22, E61, E62) pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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