Optimun and revenue maximizing trade taxes in a multicountry framework
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Arvind Panagariya [1] ; Maurice Schiff [2]
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[1] University of Maryland, College Park
University of Maryland, College Park
Estados Unidos
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[2] The World Bank
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- Localización: Revista de análisis económico, ISSN-e 0718-8870, ISSN 0716-5927, Vol. 10, Nº 1, 1995, págs. 19-35
- Idioma: inglés
- Enlaces
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Resumen
The traditional literature derives optimum and revenue-maximizing export taxes within two-country models. with one exporter and one importer (Johnson 1950-51, Tower 1977). In reality, most products, including primary products. are exported by several countries. In this paper, we present a theory of trade taxes in a three-country framework. This enables us to deal with strategic interactions among exporting countries. We show that (i) if one of the countries is a Stackelberg leader, both countries improve their welfare relative to Nash equilibrium, and in the symmetric case, the follower's welfare is higher than that of the leader; (ii) the revenue-maximizing Nash tax is larger than the optimum tax for each country; and (iii) welfare may be higher in the revenue-maximizing Nash equilibrium than in the welfare-maximizing Nash equilibrium, a result which cannot arise in two-country models.
