Tax Analysis in an Oligopoly Model

22 Pages Posted: 5 Jul 2004 Last revised: 24 Jun 2010

See all articles by Michael L. Katz

Michael L. Katz

University of California, Berkeley - Economic Analysis & Policy Group

Harvey S. Rosen

Princeton University - Department of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute)

Date Written: March 1983

Abstract

In this paper we analyze taxation using the conjectural variations model of oligopoly. We demonstrate the way in which the incidence of a tax depends upon the pattern of firm interaction. The results obtained have important implications for the controversy surrounding the question of whether a tax oncorporate income can be over-shifted. We also study normative aspects of taxation. The focus here is on the errors that can arise in excess burden calculations when incorrect assumptions on market structure are made.

Suggested Citation

Katz, Michael Louis and Rosen, Harvey S., Tax Analysis in an Oligopoly Model (March 1983). NBER Working Paper No. w1088, Available at SSRN: https://ssrn.com/abstract=304816

Michael Louis Katz (Contact Author)

University of California, Berkeley - Economic Analysis & Policy Group ( email )

Berkeley, CA 94720
United States

Harvey S. Rosen

Princeton University - Department of Economics ( email )

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Princeton, NJ 08544
United States

National Bureau of Economic Research (NBER)

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CESifo (Center for Economic Studies and Ifo Institute)

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Germany

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