A NOTE ON TAXATION, INCREASING RETURNS DUE TO SET-UP COSTS AND COMPETITIVE EQUILIBRIUM,
Abstract
Given the following problem: Suppose that a closed economy has all of the properties of convexity of preference sets and production sets except that in order to use certain production processes set-up costs must be paid. The set up costs cause increasing returns and destroy the competitive equilibrium; is there a tax policy which restores the equilibrium and would it always be approved unanimously or by a majority vote. This problem is discussed in this report.
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 07, 1967
- Accession Number
- AD0662229
Entities
People
- Martin Shubik
Organizations
- Yale University