Accession Number : AD0662229

Title :   A NOTE ON TAXATION, INCREASING RETURNS DUE TO SET-UP COSTS AND COMPETITIVE EQUILIBRIUM,

Corporate Author : YALE UNIV NEW HAVEN CONN COWLES FOUNDATION FOR RESEARCH IN ECONOMICS

Personal Author(s) : Shubik,Martin

Report Date : 07 NOV 1967

Pagination or Media Count : 13

Abstract : Given the following problem: Suppose that a closed economy has all of the properties of convexity of preference sets and production sets except that in order to use certain production processes set-up costs must be paid. The set up costs cause increasing returns and destroy the competitive equilibrium; is there a tax policy which restores the equilibrium and would it always be approved unanimously or by a majority vote. This problem is discussed in this report.

Descriptors :   (*ECONOMICS, MATHEMATICAL MODELS), OPTIMIZATION, COSTS, GAME THEORY

Subject Categories : Economics and Cost Analysis

Distribution Statement : APPROVED FOR PUBLIC RELEASE