posted on 2025-07-30, 14:03authored byCharles Blackorby, Sushama Murty
We show that if a monopoly sector is embedded in a general equilibrium framework and profits are taxed at one hundred percent, then unit (specific) taxation and ad valorem taxation are equivalent on the set of Pareto optima.
Author's pre-print draft version dated August 2011; earlier version dated 2010 issued as working paper by University of Exeter Business School. Final version published by Elsevier; available online at http://www.sciencedirect.com/