Specific and ad valorem taxation in asymmetric Cournot oligopolies

Citation
V. Denicolo et M. Matteuzzi, Specific and ad valorem taxation in asymmetric Cournot oligopolies, INT TAX P F, 7(3), 2000, pp. 335-342
Citations number
9
Categorie Soggetti
Economics
Journal title
INTERNATIONAL TAX AND PUBLIC FINANCE
ISSN journal
09275940 → ACNP
Volume
7
Issue
3
Year of publication
2000
Pages
335 - 342
Database
ISI
SICI code
0927-5940(200005)7:3<335:SAAVTI>2.0.ZU;2-N
Abstract
This paper compares ad valorem and specific taxes in asymmetric homogenous Cournot oligopolies with constant marginal costs. We show that for any give n level of industry output, ad valorem taxes are superior to specific taxes in terms of revenue raised. If the tax rates are sufficiently high, for an y given specific tax one can find an ad valorem tax that leads to greater t ax revenue, consumer surplus, and industry profits.