Arbeitspapier
Failure of ad valorem and specific tax equivalence under uncertainty
Applying a framework of perfect competition under uncertainty, we contribute to the discussion of whether or not ad valorem taxes and specific taxes are equivalent. While this equivalence holds without price uncertainty, we show that ad valorem taxes and specific taxes are almost never equivalent in the presence of uncertainty if we demand equivalence to hold pathwise. Since we obtain this result under perfect competition, our analysis also provides a further rationale for why the equivalence must fail under imperfect competition.
- Language
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Englisch
- Bibliographic citation
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Series: IAAEU Discussion Paper Series in Economics ; No. 05/2012
- Classification
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Wirtschaft
Taxation, Subsidies, and Revenue: General
Taxation and Subsidies: Efficiency; Optimal Taxation
National Budget; Budget Systems
- Subject
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ad valorem taxes and specific taxes
revenue neutrality
price uncertainty
concept of pathwise neutrality
Umsatzsteuer
Verbrauchsteuer
Steuereinnahmen
Wettbewerb
Risiko
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Goerke, Laszlo
Herzberg, Frederik
Upmann, Thorsten
- Event
-
Veröffentlichung
- (who)
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University of Trier, Institute for Labour Law and Industrial Relations in the European Union (IAAEU)
- (where)
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Trier
- (when)
-
2012
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Goerke, Laszlo
- Herzberg, Frederik
- Upmann, Thorsten
- University of Trier, Institute for Labour Law and Industrial Relations in the European Union (IAAEU)
Time of origin
- 2012
Other Objects (12)
Failure of ad valorem and specific tax equivalence under uncertainty
Profit Sharing and Relative Consumption
Commodity tax structure under uncertainty in a perfectly competitive market
Cost uncertainty in an oligopoly with endogenous entry
Cost uncertainty in an oligopoly with endogenous entry
Trade union membership and work councils in West Germany
Trade Unions and Corporate Social Responsibility
Value-added Tax versus Social Security Contributions
The Wedge
Corporate and personal income tax declarations
Tax Evasion in a Unionised Economy
Partisan competition authorities, Cournot‐oligopoly, and endogenous market structure
Failure of ad valorem and specific tax equivalence under uncertainty
Profit Sharing and Relative Consumption
Commodity tax structure under uncertainty in a perfectly competitive market
Cost uncertainty in an oligopoly with endogenous entry
Cost uncertainty in an oligopoly with endogenous entry
Trade union membership and work councils in West Germany
Trade Unions and Corporate Social Responsibility
Value-added Tax versus Social Security Contributions
The Wedge
Corporate and personal income tax declarations
Tax Evasion in a Unionised Economy
Partisan competition authorities, Cournot‐oligopoly, and endogenous market structure
Failure of ad valorem and specific tax equivalence under uncertainty
Profit Sharing and Relative Consumption
Commodity tax structure under uncertainty in a perfectly competitive market
Cost uncertainty in an oligopoly with endogenous entry
Cost uncertainty in an oligopoly with endogenous entry
Trade union membership and work councils in West Germany
Trade Unions and Corporate Social Responsibility
Value-added Tax versus Social Security Contributions
The Wedge
Corporate and personal income tax declarations
Tax Evasion in a Unionised Economy