A conventional assumption of product homogeneity when the commodity of interest is actually heterogeneous will lead to errors in an analysis of the incidence of policies, such as taxes. In this article, an equilibrium displacement model is used to derive analytical solutions for price, quantity, and quality effects of ad valorem and per unit taxes. The results show how parameters determine the ...

Este estudo obteve equivalentes ad valorem (EAVs) para medidas não tarifárias (MNTs) aplicadas por 81 países a 5.321 produtos seis dígitos do sistema harmonizado (SH). A metodologia empregada foi construída partir modelo de Kee, Nicita e Olarreaga (2009), agregando-se contribuições trazidas Beghin, Disdier Marette (2015), considerar mercados imperfeitos. O também avaliou sensibilidade dos EAVs ...

a r t i c l e i n f o The present article generalizes economic literature on the incidence of consumption taxes to general schedules of consumption taxes dependent on price. Previous studies were limited to the cases of per unit and ad valorem taxes. Three main contributions are made. Methodologically, the elasticity of the tax function is introduced as a new parameter so that the price-elastic...

In this paper, we develop a perfectly competitive spatial equilibrium model in price and quantity variables in the presence of discriminatory ad valorem tariffs, a widely used trade policy instrument. We derive the equilibrium conditions and formulate them as a variational inequality problem. An algorithm is then proposed for the computation of the equilibrium pattern and convergence results es...

This paper presents a methodological approach for the analysis of tax incidence that encompasses familiar forms of taxation in a general and analytically convenient model. In oligopolistic industries, the performance of a tax depends on the sensitivity of the unit tax rate to changes in industry output. Output-elastic tax schedules are less likely to be over-shifted and have superior welfare pr...

Abstract Can tax regimes shape the incentives to engage in armed conflict? Indian mining royalties benefit states but are set by central government. India's Maoist belt is mineral rich, and responsible for counterinsurgency operations. We exploit introduction of a 10% ad valorem on iron ore that increased royalty collections affected factor 10. find hike was followed significant intensification...

This paper studies a market for medical product in which there is perfect competition among health insurers, while the good sold by monopolist. Individuals differ their severity of illness and ex post moral hazard. We consider two regimes: one insurers use coinsurance rates (ad valorem reimbursements) copayments (specific reimbursements). show that induced equilibrium with involves lower produc...