Indirect taxation with shadow cost of public funds in mixed oligopoly

Zhang, Qidi; Wang, Leonard F.S.; Yang, Ya‐Po

doi:10.1002/mde.3110

Cited by 5 publications

(6 citation statements)

References 44 publications

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“…The main purpose of this paper is to analyze the impacts of β and e on equilibrium outcomes under different competition modes. Therefore, we assume that the product is homogeneous, which is an assumption adopted by many scholars (Lee & Wang, 2018;Xu & Lee, 2019;Zhang et al, 2020). In future research, we will focus on the analysis of product differentiation.…”

Section: Conflict Of Interestmentioning

confidence: 99%

Corporate social responsibility, consumer sensitivity, and overcapacity

2021

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This paper constructs an oligopoly model incorporating corporate social responsibility (β) and consumer sensitivity (e). We analyze the impacts of β and e on overcapacity, profits, consumer surplus, and social welfare under Cournot competition, Stackelberg competition, and Price Leadership competition. The results show that different competition modes produce different degrees of overcapacity. β has complex impacts on profits and affects the comparisons of social welfare. e positively influences equilibrium results. Enterprises have the motivation to voluntarily undertake corporate social responsibility after introducing consumer sensitivity. However, their voluntary commitment level is always lower than that formulated by the government.

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Section: Conflict Of Interestmentioning

confidence: 99%

Corporate social responsibility, consumer sensitivity, and overcapacity

2021

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“…(2019), and Zhang et al. (2020) compared an ad valorem tax and a specific tax in a closed economy. Of note, Mujumdar and Pal (1998) and Tao et al.…”

Section: Introductionmentioning

confidence: 99%

“…Considering the shadow cost of public funds, Zhang et al. (2020) reported that if the privatization level is low (medium, high), the government must adopt ad valorem (specific, ad valorem) tax.…”

Section: Introductionmentioning

confidence: 99%

“…Nonetheless, an increasing number of studies are exploring privatization and trade policies in an international mixed oligopoly market, but only Mujumdar and Pal (1998), Tao et al (2019), and Zhang et al (2020) compared an ad valorem tax and a specific tax in a closed economy. Of note, Mujumdar and Pal (1998) and Tao et al (2019) demonstrated that an ad valorem tax is welfare superior to a specific tax.…”

mentioning

confidence: 99%

“…Of note, Mujumdar and Pal (1998) and Tao et al (2019) demonstrated that an ad valorem tax is welfare superior to a specific tax. Considering the shadow cost of public funds, Zhang et al (2020) reported that if the privatization level is low (medium, high), the government must adopt ad valorem (specific, ad valorem) tax.…”

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confidence: 99%

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Tariff simplification, privatization, and welfare superiority

2022

Self Cite

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Although the World Trade Organization (WTO) is attempting to realize the liberalization of world trade, it is still feasible for countries to rebuild trade protection barriers. The recent Sino-US trade war is a good example. In the Doha round of WTO negotiations in 2004, the member states agreed to simplify tariffs. In 2006, the Hong Kong conference reached a consensus on implementing ad valorem tariffs, requiring the member states to convert a specific tariff into an ad valorem

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Indirect taxation, quality choice, and social welfare

Wang

2021

Manage Decis Econ

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This paper takes into account the quality of the products in an oligopolistic framework to examine the superiority of a specific tax versus an ad valorem tax. We find that the government can get more tax revenues by adopting ad valorem tax compared with specific tax. In the case of fixed marginal cost, the consumer surplus and social welfare is higher (lower) under specific tax than ad valorem tax if the marginal cost gap is small (large). When the marginal cost is related to product quality, we find that the consumer surplus and social welfare is higher under specific tax.

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Indirect taxation with shadow cost of public funds in mixed oligopoly

Cited by 5 publications

References 44 publications

Corporate social responsibility, consumer sensitivity, and overcapacity

Corporate social responsibility, consumer sensitivity, and overcapacity

Tariff simplification, privatization, and welfare superiority

Indirect taxation, quality choice, and social welfare

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