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Firm taxation and the endogenous distribution of markups

Article ID Journal Published Year Pages File Type
5059568 Economics Letters 2013 4 Pages PDF
Abstract
Melitz and Ottaviano (2008) predicts a monotonic relation between productivity and markups. When including revenue taxes, however, this relation is non-monotonic and depends on taxes. Even without taxes, productivity and markups can be non-monotonic depending on how non-homotheticity is modeled.
Keywords
E62H32Non-homothetic preferencesHeterogeneous firmsTaxesVariable markups
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Firm taxation and the endogenous distribution of markups
Authors
John T. Dalton, Turkmen Goksel,
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Journal
Economics Letters
Journal: Economics Letters
Related Categories
E62
H32
Non-homothetic preferences
Heterogeneous firms
Taxes
Variable markups
Economics and Econometrics
Economics, Econometrics and Finance (General)
Finance
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