Arbeitspapier

Taxation, industry integration and production efficiency

Taxes levied on production processes (e.g. VAT), are today a very important source of government revenues in developed economies. Theories of optimal taxation conclude that these taxes are detrimental to production efficiency, when firms operate in perfectly competitive markets. These theories draw on the neoclassical approach, which regards firms as single production units. The present paper investigates the effects of taxation on production efficiency, accounting for the organization of an industry. The model shows that a lump-sum tax does not have any effect on the organization of the industry, while a non lump-sum tax can be designed that induces an organizational change of the industry. The paper shows that the effect of this "tax induced organizational change" on production efficiency ultimately depends on the characteristics of the market.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 43

Klassifikation
Wirtschaft
Taxation and Subsidies: Efficiency; Optimal Taxation
Firm Organization and Market Structure
Fiscal Policies and Behavior of Economic Agents: Firm
Thema
taxation
organizational change
vertical integration
and production efficiency

Ereignis
Geistige Schöpfung
(wer)
Moriconi, Simone
Ereignis
Veröffentlichung
(wer)
Università Cattolica del Sacro Cuore, Dipartimento di Economia e Finanza (DISCE)
(wo)
Milano
(wann)
2016

Handle
Letzte Aktualisierung
10.12.2024, 08:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Moriconi, Simone
  • Università Cattolica del Sacro Cuore, Dipartimento di Economia e Finanza (DISCE)

Entstanden

  • 2016

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