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Unit versus ad valorem taxes: Monopoly in general equilibrium |
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| Affiliation: | 1. Department of Economics, University of Warwick, United Kingdom;2. GREQAM, Marseille, France |
| Abstract: | We show that if a monopoly sector is imbedded in a general equilibrium framework and profits are taxed at one hundred percent, then unit (specific) taxation and ad valorem taxation are equivalent on the set of Pareto optima. |
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