Arbeitspapier

Tax Policy, Location Choices, and Market Structure

A structural model of entry and fiscal policy is presented. It shows that taxation of variable production costs can increase product prices, lower competition, and reduce the availability of new products in small markets. The model?s test is based on a unique nationwide fiscal experiment. We study the effects of the 1869 stamped paper tax reform act on the market for daily newspapers in the Netherlands. The econometric analysis uses data on when and where the newspapers existed and were introduced together with demographic census data from 1859 and 1869. The results confirm the model?s predictions and show how taxation affects strategic business location decisions.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 499

Klassifikation
Wirtschaft
Entertainment; Media
Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices
Duration Analysis; Optimal Timing Strategies
Oligopoly and Other Imperfect Markets
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Thema
quasi-experiment
industrial organization
fiscal policy
cities
Steuerpolitik
Industrieökonomik
Innovation
Standortwahl
Markteintritt
Zeitung
Stadt
Schätzung
Theorie
Niederlande

Ereignis
Geistige Schöpfung
(wer)
Pfann, Gerard A.
van Kranenburg, Hans
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2002

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Pfann, Gerard A.
  • van Kranenburg, Hans
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2002

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