TY  - BOOK
AU  - Vetter Henrik
TI  - Consumption taxes in monopolistic competition: A comment
SN  - 09318658
AV  - HB171.5 JOU 
PY  - 2013///
CY  - Heidelberg
PB  - Springer
KW  - Unit taxes
KW  - Monopolistic competition
KW  - Mark-up pricing
N2  - We show that an ad valorem tax is better than an equal-revenue unit tax when consumers spend some fixed proportion of income on taxed goods, when firms use constant mark-up pricing, and entry and exit drive per-firm profit to zero. These key assumptions implies that ad valorem taxes are superior in oligopoly as well as monopolistic competition, showing that earlier results on taxes in monopolistic competition (Schröder in J Econ 83(3):281–292, 2004) are not due to the mode of competition, but rather are due to the functional forms used
UR  - 10.1007/s00712-012-0320-6
ER  -