Endogenous Market Structures and Optimal Taxation
Bibliographic Data
| ID | 9716518 |
|---|---|
| Authors | Andrea Colciago (0000-0002-8526-0957, De Nederlandsche Bank and University of Milano Bicocca, corresponding author) |
| Year | 2016 |
| Volume | 126 |
| Issue | 594 |
| Pages | 1441-1483 |
| Publication date | 2016-08-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/ecoj.12293 |
| OpenAlex | W1946108927 |
| Language | EN |
| Citations received | 1 |
| References cited | 37 |
This article provides optimal labour and dividend income taxation in a general equilibrium model with oligopolistic competition and endogenous firms’ entry. In the long run, the optimal dividend income tax corrects for inefficient entry. The dividend income tax depends on the form of competition and the nature of the sunk entry costs. In particular, it is higher in market structures characterised by competition in quantities rather than those characterised by price competition. Oligopolistic competition leads to an endogenous countercyclical price markup. As a result, offsetting the distortions over the business cycle requires deviations from full tax smoothing
Competition (biology · Cournot competition · Dividend · Economics · Free entry · General equilibrium theory · Market structure · Microeconomics · Monetary economics · Oligopoly · Sunk costs · Corporate Taxation and Avoidance · Fiscal Policy and Economic Growth · Politics, Economics, and Education Policy
Job Creation and Job Destruction in the Theory of Unemployment
Optimal Taxation of Capital Income in General Equilibrium with Infinite Lives
Redistributive taxation in a simple perfect foresight model
Markups, Gaps, and the Welfare Costs of Business Fluctuations
Endogenous Entry, Product Variety, and Business Cycles
Tax Smoothing in Frictional Labor Markets
Endogenous Market Structures and the Business Cycle
| Citations per year | 1 |
|---|---|
| Citation span | 2025 - 2025 (1) |
| Highly cited | No |