Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/148187 
Year of Publication: 
2016
Series/Report no.: 
ISER Discussion Paper No. 959
Publisher: 
Osaka University, Institute of Social and Economic Research (ISER), Osaka
Abstract: 
We develop a 2×2×2 model with the following features: (1) one sector is perfectly competitive while the other is oligopolistic; (2) one country has unemployment while the other attains full employment; (3) oligopolists move internationally; and (4) the ownership of each oligopolist is internationally shared. The welfare effects of various tax-cum-subsidies are examined. If the oligopolistic sector is capital intensive, subsidizing the oligopolists' profits, inflows, production or employment is more likely to harm the country. The number of domestically based oligopolists, the volume of domestic demand for the oligopoly-produced commodity, and the country's ownership share of oligopolists also influence the effect.
Subjects: 
Corporate Taxation
Production Subsidies
Unemployment
Oligopoly
JEL: 
F12
F13
H25
H71
R38
Document Type: 
Working Paper

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