DEBASMITA BASAK DEBASMITA.BASAK@NOTTINGHAM.AC.UK
Assistant Professor
Social Efficiency of Market Entry Under Tax Policy
Basak, Debasmita; Mukherjee, Arijit
Authors
ARIJIT MUKHERJEE Arijit.Mukherjee@nottingham.ac.uk
Professor of Industrial Economics
Abstract
We provide a new rationale for socially insufficient market entry. We show that if the shadow cost of public funds is sufficiently high, the number of firms under free entry can be socially insufficient if the tax policies are "time inconsistent", so that the governments cannot commit to the tax policies before market entry of firms. Hence, strategic tax policies may provide a reason why policymakers should engage in pro-competitive policies. Lump-sum subsidies to firms may be a way to achieve that goal.
Citation
Basak, D., & Mukherjee, A. (2022). Social Efficiency of Market Entry Under Tax Policy. B.E. Journal of Economic Analysis and Policy, 22(3), 601-610. https://doi.org/10.1515/bejeap-2022-0012
Journal Article Type | Article |
---|---|
Acceptance Date | Apr 12, 2022 |
Online Publication Date | May 2, 2022 |
Publication Date | 2022-07 |
Deposit Date | Apr 13, 2022 |
Publicly Available Date | May 3, 2023 |
Journal | B.E. Journal of Economic Analysis and Policy |
Electronic ISSN | 1935-1682 |
Publisher | Walter de Gruyter GmbH |
Peer Reviewed | Peer Reviewed |
Volume | 22 |
Issue | 3 |
Pages | 601-610 |
DOI | https://doi.org/10.1515/bejeap-2022-0012 |
Keywords | Economics, Econometrics and Finance (miscellaneous); Economics and Econometrics |
Public URL | https://nottingham-repository.worktribe.com/output/7759120 |
Publisher URL | https://www.degruyter.com/document/doi/10.1515/bejeap-2022-0012/html |
Files
10.1515_bejeap-2022-0012
(357 Kb)
PDF
Publisher Licence URL
https://creativecommons.org/licenses/by/4.0/
You might also like
Cooperative R&D for a New Product under Convex Production Costs
(2023)
Journal Article
Pioneer, early follower or late entrant: Entry dynamics with learning and market competition
(2023)
Journal Article
Optimal patent licensing—Two or three‐part tariff
(2022)
Journal Article
Downloadable Citations
About Repository@Nottingham
Administrator e-mail: digital-library-support@nottingham.ac.uk
This application uses the following open-source libraries:
SheetJS Community Edition
Apache License Version 2.0 (http://www.apache.org/licenses/)
PDF.js
Apache License Version 2.0 (http://www.apache.org/licenses/)
Font Awesome
SIL OFL 1.1 (http://scripts.sil.org/OFL)
MIT License (http://opensource.org/licenses/mit-license.html)
CC BY 3.0 ( http://creativecommons.org/licenses/by/3.0/)
Powered by Worktribe © 2024
Advanced Search