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Selected Works of Ted C Bergstrom
Article
Efficiency-Inducing Taxation for a Monopolistically Supplied Depletable Resource
Department of Economics, UCSB (1981)
  • Ted Bergstrom, University of California, Santa Barbara
  • John Cross
  • Dick Porter
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Abstract

We show that for a depletable resource, if the competitive time path of prices is known, and if the profit function is concave, then there is an easily described time path of taxes and/or subsidies that would induce a monopolist to follow an efficient time path of extraction.

Keywords
  • Depletable resources,
  • monopoly,
  • optimal taxation
Disciplines
Publication Date
July, 1981
Citation Information
Ted Bergstrom, John Cross and Dick Porter. "Efficiency-Inducing Taxation for a Monopolistically Supplied Depletable Resource" Department of Economics, UCSB Vol. 15 (1981)
Available at: http://works.bepress.com/ted_bergstrom/73/