Extension of Long-Staehler’s Model on Optimal Export Tax in the Case of Privatization

HTML  XML Download Download as PDF (Size: 418KB)  PP. 544-551  
DOI: 10.4236/me.2015.65053    2,742 Downloads   3,307 Views  

ABSTRACT

This paper extends Long and Staehler’s model and studies optimal export tax in the case of privatization. The authors find that optimal export tax increases with the degree of privatization if product differentiation exists. The authors provide a counterexample to Long and Staehler’s model and reach a different conclusion. This finding emphasizes that the relationship between the variables of optimal export tax and conditions of asymmetric cost and product differentiation is quite different from Long and Staehler’s model. Since optimal export tax is endogenous in the model, the authors also consider the potential endogeneity of privatization decision, which is an important issue in a traditional mixed duopoly analysis.

Share and Cite:

Wu, T. and Lin, J. (2015) Extension of Long-Staehler’s Model on Optimal Export Tax in the Case of Privatization. Modern Economy, 6, 544-551. doi: 10.4236/me.2015.65053.

Copyright © 2024 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.