Optimal export taxes with an endogenous location.

A normative analysis is presented to examine the way in which the inclusion of economic space affects export tax policy and to compare optimal export taxes under endogenous location with optimal export taxes under exogenous location, both in the short term and the long term. It is argued that becau...

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Detalles Bibliográficos
Publicado en:Southern Economic Journal Vol. 65; no. 4; pp. 940 - 953
Autores principales: Hwang, Hong, Mai, Chao-cheng
Formato: Artículo
Publicado: Southern Economic Association April 1999
Materias:
Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:A normative analysis is presented to examine the way in which the inclusion of economic space affects export tax policy and to compare optimal export taxes under endogenous location with optimal export taxes under exogenous location, both in the short term and the long term. It is argued that because the output effect of export tax does not differ from exogenous-location models with constant returns to scale but does differ with nonconstant returns, the analysis deepens the understanding of the implications of new trade theory's departure from the constant returns assumption of traditional trade theory. The neglected role of transport expenses in plant location is also explored.