The Comparative Efficiency of Ad Valorem and Specific Taxes Under Monopoly and MonopsonyEconomics Letters
AbstractIt 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.
Copyright1999 Elsevier Inc. All rights reserved.
Citation InformationStephen 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/