Optimal Export Taxes, Welfare, Industry Concentration, and Firm Size: A General Equilibrium Analysis

Posted: 28 Jul 2000

See all articles by Roberto A. De Santis

Roberto A. De Santis

European Central Bank (ECB) - Directorate General Economics

Abstract

By using an imperfect-competition model, it is shown that an export tax, optimal in partial equilibrium, is upwardly biased and may not be optimal in a general equilibrium setting with free entry/exit. It is shown also that the export tax has an ambiguous impact on firm size. The results of an applied general equilibrium model for the Turkish economy suggest that the export tax estimated with the PE formula is larger by a small factor than the computed export tax. However, the export tax leads to an increase in firm size and, most importantly, to a social welfare loss.

JEL Classification: F13, F14

Suggested Citation

De Santis, Roberto A., Optimal Export Taxes, Welfare, Industry Concentration, and Firm Size: A General Equilibrium Analysis. Review of International Economics, Vol. 8, Issue 2, May 2000. Available at SSRN: https://ssrn.com/abstract=234870

Roberto A. De Santis (Contact Author)

European Central Bank (ECB) - Directorate General Economics ( email )

Kaiserstrasse 29
D-60311 Frankfurt am Main
Germany

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