Tax Analysis in an Oligopoly Model

22 Pages Posted: 5 Jul 2004 Last revised: 24 Jun 2021

See all articles by Michael L. Katz

Michael L. Katz

University of California, Berkeley - Department of Economics; Haas School of Business

Harvey S. Rosen

Princeton University - Department of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute)

Date Written: March 1983

Abstract

In this paper we analyze taxation using the conjectural variations model of oligopoly. We demonstrate the way in which the incidence of a tax depends upon the pattern of firm interaction. The results obtained have important implications for the controversy surrounding the question of whether a tax oncorporate income can be over-shifted. We also study normative aspects of taxation. The focus here is on the errors that can arise in excess burden calculations when incorrect assumptions on market structure are made.

Suggested Citation

Katz, Michael L. and Rosen, Harvey S., Tax Analysis in an Oligopoly Model (March 1983). NBER Working Paper No. w1088, Available at SSRN: https://ssrn.com/abstract=304816

Michael L. Katz (Contact Author)

University of California, Berkeley - Department of Economics ( email )

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Haas School of Business ( email )

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Harvey S. Rosen

Princeton University - Department of Economics ( email )

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National Bureau of Economic Research (NBER)

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CESifo (Center for Economic Studies and Ifo Institute)

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