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Article
The Comparative Efficiency of Ad Valorem and Specific Taxes Under Monopoly and Monopsony
Economics Letters
  • Stephen F. Hamilton, Kansas State University
Publication Date
5-1-1999
Abstract

It is well known that ad valorem taxes welfare-dominate specific taxes under monopoly. This paper demonstrates that the comparative welfare ranking of the two instruments reverses under monopsony. The relative performance of alternative tax forms is thus highly sensitive to whether the buyer or seller has market power.

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Citation Information
Stephen F. Hamilton. "The Comparative Efficiency of Ad Valorem and Specific Taxes Under Monopoly and Monopsony" Economics Letters Vol. 63 Iss. 2 (1999) p. 235 - 238
Available at: http://works.bepress.com/shamilto/17/