Long–Run Industry Equilibrium Under Demand Uncertainty: The Locational Effect of Business Taxes
Abstract:This paper departs from previous work on the locational effects of business taxes under uncertainty by considering the attainment of long–run industry equilibrium. A general m input, planar–space production location model is adopted, and each individual firm is assumed to face random industry demand. I provide some interesting results which are contrary to those proposed by previous studies in the single–firm context and the relative impact of various business taxes.
Document Type: Research Article
Affiliations: Institute of Economics, Academia Sinica, Taipei, Taiwan email@example.com
Publication date: February 1, 2003