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When are origin and destination regimes equivalent?

de Meza, David ORCID: 0000-0002-5638-8310, Lockwood, Ben and Myles, Gareth D. (1994) When are origin and destination regimes equivalent? International Tax and Public Finance, 1 (1). pp. 5-24. ISSN 0927-5940

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Identification Number: 10.1007/BF00874086


A series of equivalence results are established which show that a switch from a destination regime of commodity taxation to an origin regime has no real effects. These significantly generalize those in the existing literature. Assuming uniformity of taxes within each country, equivalence applies (1) in a general competitive economy with an arbitrary (finite) number of goods and factors of production, arbitrary factor taxes, and arbitrary transport costs; (2) in an imperfectly competitive economy with any form of imperfect competition and with transport costs; and (3) in monetary economies where there is some price rigidity (such as nominal wage rigidity) as long as the exchange rate is flexible. Conditions under which nonequivalence applies are also identified and discussed.

Item Type: Article
Official URL:
Additional Information: © 1994 Kluwer Academic Press
Divisions: Management
Subjects: H Social Sciences > HB Economic Theory
Date Deposited: 09 May 2011 14:21
Last Modified: 15 May 2024 23:35

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