文章基本信息

标题：PRODUCT DIVERSITY, DEMAND STRUCTURES, AND OPTIMAL TAXATION
本地全文：下载
作者：Vivien Lewis ; Roland Winkler
期刊名称：Economic Inquiry
印刷版ISSN：0095-2583
出版年度：2015
卷号：53
期号：2
页码：979-1003
DOI：10.1111/ecin.12159
语种：English
出版社：Western Economic Association International
摘要：This article studies optimal taxation in a general equilibrium macroeconomic model with endogenous entry. We compare the constant elasticity of substitution (CES) model to three alternative demand structures: oligopolistic competition in prices, oligopolistic competition in quantities, and translog preferences. Our economy is characterized by two distortions: a labor distortion due to the misalignment of markups on goods and leisure, and an entry distortion due to the misalignment of the consumer surplus effect and the profit destruction effect of entry. The two distortions interact in determining the wedge between the market‐driven and optimal level of product diversity. We show how optimal labor and entry taxes depend on the prevailing demand structure, the nature and size of entry costs, and the degree of substitutability between goods. (JEL E22, E61, E62)