ECONOMICS LETTERS, vol.121, no.3, pp.520-523, 2013 (SSCI)
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. (C) 2013 Elsevier B.V. All rights reserved.