Joint research unit 7235

Taxing Market Power in Strategic Bilateral Trade with Quasi-Linear Preferences

Speaker :Pascal Yebarth

Co-auteur: Ludovic Julien.
Discutants: Rémi Oddou (sénior) et Ben Vieira Kouassi (junior)

Abstract: In this note, we investigate the effectiveness and the optimality of fiscal policies in the strategic bilateral exchange framework of Gabszewicz and Grazzini (JPET, 1999). We notably propose to test the robustness of the following result: endowment taxation with transfers can implement a first-best allocation in Cobb-Douglas, linear and CES strategic bilateral trade. Through an example in which the preferences of traders are represented by quasi-linear utility functions, we show that endowment taxation with transfers implements a Pareto-optimal allocation, while taxation without transfer does not. Indeed, the optimality of endowment taxation with transfers is robust for a larger class of utility functions, including the quasi-linear utility function, which is often used to represent the preferences of agents in public economics.

AGENDA

Thursday 7 December 2023

Groupe de travail Economie Comportementale

Vincent Lenglin (Université Catholique de Lille)

How Do We Apply Self-Protection to Others?

Thursday 7 December 2023

How Do We Apply Self-Protection to Others?

Vincent Lenglin (Université Catholique de Lille)

How Do We Apply Self-Protection to Others?

Thursday 7 December 2023

Explaining economic performances in the French employment zone: spatial externalities and related variety

Emmanuelle Faure

Explaining economic performances in the French employment zone: spatial externalities and related variety

Thursday 7 December 2023

Doctorants

Emmanuelle Faure

Explaining economic performances in the French employment zone: spatial externalities and related variety

Monday 11 December 2023

Law, Institutions and Economics in Nanterre (LIEN)

Bastien Michel (LEMNA, Nantes)

Measuring the Impact of Incarceration on Recidivism in Denmark

Monday 11 December 2023

Measuring the Impact of Incarceration on Recidivism in Denmark

Bastien Michel (LEMNA, Nantes)

Measuring the Impact of Incarceration on Recidivism in Denmark

Wednesday 13 December 2023

Économies du monde musulman

Chahir Zaki (LEO, Université d’Orléans)

Dette en Egypte : conjoncture défavorable ou structure vulnérable ?

Wednesday 13 December 2023

Dette en Egypte : conjoncture défavorable ou structure vulnérable ?

Chahir Zaki (LEO, Université d’Orléans)

Dette en Egypte : conjoncture défavorable ou structure vulnérable ?

Inscription aux Newsletters

Newsletter subscription