Suchergebnisse

AbstractThis paper merges three strands of the literature – industrial organization, international trade, and economics of technical change – to examine the effect of tariffs on international mixed oligopolies which conduct research and development (R&D) that is prone to spillovers. Mixed oligopolies are prevalent in the defense sector, among other sectors. Using a two-stage sequential game with R&D in the first stage and production in the second stage, results show that higher tariffs reduce outputs of both the domestic public firm and foreign private firms, and private R&D. Effects on domestic R&D and welfare, and profits of foreign private firms depend upon spillovers. Within a large range of research spillovers, higher tariffs can in fact lower welfare. Some of these findings are different from traditional oligopolies and from models that ignore research spillovers. Policy implications are discussed.

AbstractUsing state level U.S. data from 1994‐2009, this research examines the impact of the Internet on cigarette demand and discusses resulting implications for tax policy. Results show that the Internet increases the demand price elasticity of cigarettes, which limits the ability of governments to generate additional tax revenues through cigarette tax increases. Further, the smuggling of cigarettes, both across domestic and international borders, remains significant, and tobacco producers and Indian casinos undermine efforts to lower cigarette sales.

AbstractThis Editorial introduces the papers in the Policy & Internet Special Issue on Internet Taxation (volume 4, issue 1).