Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/270409 
Authors: 
Year of Publication: 
2022
Series/Report no.: 
Research Report No. 2022-7
Publisher: 
The University of Western Ontario, Department of Economics, London (Ontario)
Abstract: 
This paper empirically assesses the impact of a discontinuous tax schedule on prices, markups and product assortment in the Brazilian automobile industry. To this end, I estimate a structural, equilibrium model of demand and supply for over a hundred different models and engine sizes of automobiles. With the model estimates of price elasticities and marginal costs I quantify how market power impacts the progressivity of the discontinuous tax schedule. I also examine how firms would reposition their products to avoid the tax and quantify the impact of this repositioning on equilibrium outcomes.
JEL: 
D22
D43
H23
L13
L51
L62
Document Type: 
Working Paper

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