Economic integration and the choice of commodity tax base with endogenous market structures

McCracken, Scott; Stähler, Frank

doi:10.1007/s10797-008-9099-3

Cited by 7 publications

(6 citation statements)

References 16 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…() are robust to some degree of product differentiation, and also to differentiated Bertrand competition. McCracken and Stähler () extend the model of Haufler et al . () to merge free entry.…”

Section: Introductionmentioning

confidence: 81%

“…Hashimzade et al (2005) show that the results of Haufler et al (2005) are robust to some degree of product differentiation, and also to differentiated Bertrand competition. McCracken and St€ ahler (2010) extend the model of Haufler et al (2005) to merge free entry. They show that the destination principle dominates the origin principle when trade costs are high or demand is linear.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Trade costs and the choice of international commodity tax base revisited: The role of transboundary pollution

2018

Int J of Economic Theory

View full text Add to dashboard Cite

It is generally believed that when trade costs fall, the origin‐based production taxes are superior to the destination‐based consumption taxes under imperfect competition. This result can be justified from a perspective of purely local pollution when considering a production‐type externality. However, we show that with smaller trade costs, the destination‐based consumption taxes tend to generate greater welfare levels than the origin‐based production taxes when the degree of a production‐type transboundary externality is high enough, contrary to general belief.

show abstract

Section: Introductionmentioning

confidence: 81%

Section: Introductionmentioning

confidence: 99%

Trade costs and the choice of international commodity tax base revisited: The role of transboundary pollution

2018

Int J of Economic Theory

View full text Add to dashboard Cite

show abstract

“…We show that employing destinationbased consumption taxes adjusted to import tariff reductions worsens domestic welfare, and leads to a strict Pareto deterioration, but adjusting origin-based production taxes 5 Extending the Keen-Ligthart (2005) model, Naito and Abe (2008) and Fujiwara (2013) show a welfare-and revenue-improving possibility. 6 Lockwood (2001) and McCracken and Stähler (2010) offer a comprehensive survey on the comparison of two tax bases under perfect competition and imperfect competition, respectively. 7 Haufler and Pfluger (2004) also show the invalidity of the Keen-Lahiri (1998) result in a monopolistically competitive model.…”

Section: Introductionmentioning

confidence: 99%

“…Lockwood () and McCracken and St

\overset{a}{true}

hler () offer a comprehensive survey on the comparison of two tax bases under perfect competition and imperfect competition, respectively.…”

mentioning

confidence: 99%

Tax Principles and Tariff‐Tax Reforms under International Oligopoly

Fujiwara

2016

J Public Economic Theory

View full text Add to dashboard Cite

In a two‐country duopoly model, this paper compares destination‐ and origin‐based commodity taxes adjusted to tariff reductions so that the world price and foreign welfare remain unaltered. We first find that this tariff‐tax reform reduces domestic welfare under the destination principle while the opposite holds under the origin principle. Then, it is shown that this ranking is reversed if exports are taxed. In short, which is preferable between destination and origin taxes depends on the tax principle and which between imports and exports are taxed.

show abstract

“…Such models lack strategic interaction between firms, and are hard to compare directly to those with Cournot competition. Accordingly, McCracken and Stähler (2010) extend the model of Haufler et al (2005) to allow for free entry. Under the destination principle with a fixed market structure and segmented markets, the two markets are independent (i.e.…”

Section: Introductionmentioning

confidence: 99%

The choice of commodity tax base in the presence of horizontal foreign direct investment

McCracken

2014

Int Tax Public Finance

Self Cite

View full text Add to dashboard Cite

We analyse the choice of commodity tax base, when countries set their taxes non-cooperatively in a reciprocal dumping model of homogeneous goods trade with horizontal foreign direct investment (FDI). We show that the consumption base (destination principle) weakly welfare-dominates the production base (origin principle) for a large range of plant fixed costs. When integration is complete, the destination principle dominates the origin principle for all levels of plant fixed costs below which FDI occurs under the origin principle. This contrasts with much of the existing literature which has tended to support the origin principle under imperfect competition with a fixed market structure.

show abstract

Economic integration and the choice of commodity tax base with endogenous market structures

Abstract: Economic integration, Commodity taxation, Trade, Imperfect competition, Endogenous market structures, F12, H20,

Cited by 7 publications

References 16 publications

Trade costs and the choice of international commodity tax base revisited: The role of transboundary pollution

Trade costs and the choice of international commodity tax base revisited: The role of transboundary pollution

Tax Principles and Tariff‐Tax Reforms under International Oligopoly

The choice of commodity tax base in the presence of horizontal foreign direct investment

Contact Info

Product

Resources

About