Mixed duopoly,privatization, and subsidization with excess burden of taxation |
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Authors: | Toshihiro Matsumura Yoshihiro Tomaru |
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Institution: | 1. Institute of Social Science, The University of Tokyo;2. School of Economics, Chukyo University |
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Abstract: | We investigate optimal tax‐subsidy policies in mixed and private oligopolies with excess burden of taxation. We compare the optimal subsidies and the resulting welfare levels among four regimes: mixed and private Cournot duopolies and Stackelberg competition with public and private leaderships. We show that, in contrast to the existing works on the privatization neutrality theorem, privatization affects resulting welfare. |
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Keywords: | L13 L33 H20 |
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