A FURTHER COMMENT ON THE EFFECTS OF EXCISE TAXES.
In this article authors comment on the comparison of the impact of excise taxes under competition and monopoly, as described by the economist R. L. Bishop. Here they present the competitive partial-equilibrium solutions to the excise tax problem in the form of very simple expressions in terms of the...
| Publicado en: | Quarterly Journal of Economics Vol. 86; no. 4; pp. 684 - 687 |
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| Autores principales: | , |
| Formato: | Artículo |
| Publicado: |
Oxford University Press / USA
Nov72
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| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | In this article authors comment on the comparison of the impact of excise taxes under competition and monopoly, as described by the economist R. L. Bishop. Here they present the competitive partial-equilibrium solutions to the excise tax problem in the form of very simple expressions in terms of the elasticities of the market demand and supply functions. The theorem of ad valorem tax is described in the article. For the case of an ad valorem tax levied at a particular rate, the well known expressions for the market quantity and price response to a change in the tax rate are presented in the form of mathematical equations. The theorem has also been expressed in terms of the elasticities of the market supply and demand functions. These expressions give the effect of an ad valorem tax rate change on market quantity and price in terms of the tax rate and the elasticities of demand and supply. The limiting properties for different expressions are explained by the author. The author also presents the formula for the elasticity of revenue with respect to the elasticity of supply price. |
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