Firm taxation and the endogenous distribution of markups

Dalton J. T., GÖKSEL T.

ECONOMICS LETTERS, vol.121, no.3, pp.520-523, 2013 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 121 Issue: 3
  • Publication Date: 2013
  • Doi Number: 10.1016/j.econlet.2013.10.010
  • Journal Name: ECONOMICS LETTERS
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.520-523
  • Keywords: Taxes, Variable markups, Heterogeneous firms, Non-homothetic preferences, AGGREGATE PRODUCTIVITY, SIZE
  • Ankara University Affiliated: Yes

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. (C) 2013 Elsevier B.V. All rights reserved.