Indirect taxation of monopolists: A tax on price

Artikel

A digressive tax such as a variable rate sales tax or a tax on price gives firms an incentive for expanding output. Thus, unlike unit and ad valorem taxes which amplify the harm from monopoly, a digressive tax lessens the harm. We analyse a tax on price with respect to efficiency and practical policy appeal. In particular, we show how tax reforms based only on observation of price and quantity can make use of a tax on price in order to improve welfare. That is, it is practical to use a tax on price. The argument extends to fixed-number homogenous oligopoly.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economics: The Open-Access, Open-Assessment E-Journal ; ISSN: 1864-6042 ; Volume: 7 ; Year: 2013 ; Issue: 2013-6 ; Pages: 1-13 ; Kiel: Kiel Institute for the World Economy (IfW)

Classification and Topics

• Classification: Wirtschaft ; Taxation and Subsidies: Efficiency; Optimal Taxation ; Oligopoly and Other Imperfect Markets
• Subject: tax on price ; ad valorem tax ; tax incidence ; Preis ; Steuer ; Umsatzsteuer ; Steuerwirkung ; Monopol ; Ramsey-Preis ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Vetter, Henrik
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2013

Further information

• DOI: doi:10.5018/economics-ejournal.ja.2013-6
• Handle: http://hdl.handle.net/10419/70098
• Last update: 10.03.2025, 11:42 AM CET