The Principle of Comprehensive Cost, Applied to the Relation between Market Structure and Excise Tax Incidence
نویسنده
چکیده
Perfect competition or Bertrand competition cause price to equal marginal cost, so that excise tax incidence can be illustrated with the most basic supply-demand diagram. Some results are: • excise taxes are shared by suppliers and demanders according to their relative price elasticities • holding revenue fixed, it doesn’t matter (for supply price, demand price, and quantity traded) whether the excise tax is ad valorem or specific • a tax’s incidence is fully summarized its effect on demand price
منابع مشابه
بررسی رابطۀ میان ساختار بازار و ساختار سرمایه در بورس اوراق بهادار تهران
In recent years, financial economists have increasingly recognized the interaction between market structure and capital structure or financial decisions of the firms. This research analyzes the relationship between market structure (power) and the capital structure (leverage ratio) of listed companies in Tehran Stock Exchange (TSE) based on static and dynamic approach. In this research we s...
متن کاملImpact of Changes in Excise Tax Rate for Strong Alcohol on Consumption and State Revenues in Latvia
State tax revenues in most countries started to decrease during the recession. Government of Latvia decided to compensate the decline by increasing rates of several taxes including excise tax on strong alcohol. The total increase in 2009 constituted 42% and the rate increased from 896€ to 1 266€ for 100l of absolute alcohol. Since then this has had a negative impact on consumption volumes and t...
متن کاملThe Status of Contradiction Principle and the Right to Appeal in Iran’s Tax Dispute Settlment System
Abstract No one denies the importance of taxes and citizens’ obligation to pay them. In essence, the regular and transparent payment of taxes by citizens is one of the pillar components of sustainable development for any country. At the same time, there might be cases of dispute between the taxpayers and the tax authority regarding the amount or manner of audit, computation and collectio...
متن کاملEvaluate the relationship between the structure of the economy and capital market financing
The importance of developing the financial sector, followed by the development of its financing comes from the Efficient financial sector, a key role in mobilizing resources for investment, encouraging foreign capital to enter and equipment and optimize resource allocation mechanism plays And a developed financial system in a country, with financing for the real sector of the economy, creates o...
متن کاملA New Version of Edgeworth’s Taxation Paradox
Edgeworths taxation paradox states that an excise tax can decrease the market price of a good. This paper presents a new version of the paradox in which a tax reduces price because it attracts entry of additional rms into the market. The paper also presents two new applications: (i) an emissions tax that leads to an increase in industry emissions (due to entry), and (ii) an interest rate cut ...
متن کامل