Abstract
We consider taxes on firms which engage in rent-seeking contests. The taxes can be on realized profits or on rent-seeking expenditures, and the firms can engage in a context where either the hoghest bidder wins the prize, or else a firm's probability of winning equals the ratio of its expenditures to expenditures by all firms. We find the deadweight loss, and cause no reduction in the profits of firms.
Item Type: | Paper |
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Keywords: | Taxes; Enterprises |
Faculties: | Economics > Chairs > MPI for Tax Law and Public Finance |
Subjects: | 300 Social sciences > 330 Economics |
JEL Classification: | L10, L11 |
Place of Publication: | Irvine |
Language: | English |
Item ID: | 24493 |
Date Deposited: | 07. Apr 2015, 09:24 |
Last Modified: | 03. Mar 2017, 10:55 |