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Title: |
On the Effects of Commodity Tax under Free
Entry Oligopoly in the Presence of Export Market |
| Author: |
Tanaka,
Yasuhito |
| Author
Affiliation: |
Yamagata U |
| Source: |
International Economic Journal, Autumn 1992, v. 6, no. 3, pp. 83-92 |
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Publication Date: |
Autumn 1992 |
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Abstract: |
If the inverse demand function in the
domestic country is concave, or it is not too convex even if it is
convex, a small specific commodity tax raises the social welfare in the
domestic country and lowers the welfare of the foreign consumers, and
the optimal tax for the domestic country is positive. The presence of an
export market enlarges the possibility that a specific commodity tax
raises the social welfare in the domestic country at the sacrifice of
the welfare of the foreign consumers. |
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