Excise taxes, over-shifting, cross-elasticity, and tax revenue
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DOI: 10.1080/13504851.2016.1167821
Abstract: ABSTRACT This article examines cross-elasticity effects in excise taxation for markets characterized by monopolistic competition and over-shifting. Extending the constant elasticity demand model to consider cross-elasticity leads to notably different results regarding tax revenue maximization.… read more here.
Keywords: cross elasticity; elasticity; tax revenue;