Research work · 2012
Technology Choice and Unit vs Ad Valorem Tax
Francisco Llorente Galera, Isabel Rodríguez‐Tejedo, Juan Carlos Molero
RePEc: Research Papers in Economics
Abstract
This paper compares the effects of unitary and ad valorem taxes in a homogeneous good market where two technologies are freely available. We find that, both in monopolies and Cournot oligopolies, unit taxes may be welfare superior to ad valorem taxes.