Original scientific paper
https://doi.org/10.1080/1331677X.2018.1555048
Efficiency comparison of unit and ad valorem taxation in mixed duopoly
Aiyuan Tao
; School of International Economics and Trade, Shanghai Lixin University of Accounting and Finance, Shanghai, China
Yingjun Zhu
; Accounting Research Institute, Shanghai Lixin University of Accounting and Finance, Shanghai, China
Xiangqing Zou
; School of Accounting, Shanghai Lixin University of Accounting and Finance, Shanghai, China
Abstract
In this paper, we consider the relative efficiency of unit taxation and ad valorem taxation in terms of welfare implications in different imperfectly competitive markets. Under the assumption that these two taxations can produce the same total output in equilibrium, which is also used by Anderson (2001), we show that ad valorem taxation is always welfare superior to unit taxation under full nationalisation, full privatisation, and partial privatisation.
Keywords
Unit taxation; ad valorem taxation; efficiency; partial privatisation
Hrčak ID:
228583
URI
Publication date:
22.1.2019.
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