Income effects and the welfare consequences of tax in differentiated product oligopoly Rachel Griffith, Lars Nesheim, Martin O'Connell
By: Griffith, Rachel
.
Contributor(s): Nesheim, Lars | O'Connell, Martin.
Material type: 
ArticlePublisher: 2018Subject(s): OLIGOPOLIOS | IMPUESTOS | RENTA | BIENESTAR SOCIALOnline resources: Click here to access online
In:
Quantitative economics : journal of the Econometric Society v. 9, n. 1, March, 2018, p. 305-341 Summary: Random utility models are widely used to study consumer choice. The vast majority of applications assume utility is linear in consumption of the outside good, which imposes that total expenditure on the subset of goods of interest does not
affect demand for inside goods and restricts demand curvature and pass-through. We show that relaxing these restrictions can be important, particularly if one is interested in the distributional effects of a policy change, even in a market for a small
budget share product category.We consider the use of tax policy to lower fat consumption and show that a specific (per unit) tax results in larger reductions than an ad valoremtax, but at a greater cost to consumers.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 2132/2018/1-1 (Browse shelf) | Available | OP 2132/2018/1-1 |
Disponible en formato electrónico a través de la Biblioteca del IEF.
Resumen.
Bibliografía.
Random utility models are widely used to study consumer choice. The vast majority of applications assume utility is linear in consumption of the outside good, which imposes that total expenditure on the subset of goods of interest does not
affect demand for inside goods and restricts demand curvature and pass-through. We show that relaxing these restrictions can be important, particularly if one is interested in the distributional effects of a policy change, even in a market for a small
budget share product category.We consider the use of tax policy to lower fat consumption and show that a specific (per unit) tax results in larger reductions than an ad valoremtax, but at a greater cost to consumers.
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