Arbeitspapier

Commodity Taxation and International Trade in Imperfect Markets

This paper studies non-cooperative commodity taxation in a trade model with imperfect competition and trade costs. Nationally optimal tax policy simultaneously tries to correct the domestic distortion from imperfect competition and to shift rents to the home country. Importantly, this trade-off depends qualitatively on the international commodity tax regime in operation. For low levels of trade costs, we show that production-based commodity taxes dominate from a global welfare perspective, but this ranking is reversed in favor of consumption-based taxation when trade costs become sufficiently high.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 376

Classification
Wirtschaft
Subject
Commodity taxation
imperfect competition
strategic trade policy

Event
Geistige Schöpfung
(who)
Haufler, Andreas
Schjelderup, Guttorm
Stähler, Frank
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2000

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Haufler, Andreas
  • Schjelderup, Guttorm
  • Stähler, Frank
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2000

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