Abstract

http://ssrn.com/abstract=1324426
 
 

Citations (2)



 


 



Pass-Through as an Economic Tool: Principles of Incidence under Imperfect Competition


E. Glen Weyl


Microsoft Research New York City; Yale University

Michal Fabinger


University of Tokyo

February 24, 2013

Journal of Political Economy, Vol. 121, No. 3, Forthcoming

Abstract:     
We extend five principles of tax incidence under perfect competition to a general model of imperfect competition. The principles cover 1) the independence of physical and economic incidence, the 2) qualitative and 3) quantitative manner in which taxes are split between consumers and producers, 4) the determinants of tax pass-through and 5) the integration of local incidence to determine the overall division of surplus. We show how these principles can be used to simplify and generalize the analysis of a range of economic questions such as the optimal procurement of new markets and the welfare effects of third-degree price discrimination.

Number of Pages in PDF File: 62

Keywords: incidence, pass-through, conduct parameters, oligopoly

JEL Classification: D40, F10, H22


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Date posted: January 8, 2009 ; Last revised: March 6, 2013

Suggested Citation

Weyl, E. Glen and Fabinger, Michal, Pass-Through as an Economic Tool: Principles of Incidence under Imperfect Competition (February 24, 2013). Journal of Political Economy, Vol. 121, No. 3, Forthcoming. Available at SSRN: http://ssrn.com/abstract=1324426 or http://dx.doi.org/10.2139/ssrn.1324426

Contact Information

Eric Glen Weyl (Contact Author)
Microsoft Research New York City ( email )
641 Avenue of the Americas, 7th Floor
New York, NY 10011
United States
(857) 998-4513 (Phone)
HOME PAGE: http://www.glenweyl.com
Yale University ( email )
28 Hillhouse Ave
New Haven, CT 06520-8268
United States
Michal Fabinger
University of Tokyo ( email )
Tokyo
Japan
HOME PAGE: http://sites.google.com/site/fabinger/
Feedback to SSRN


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