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Long–Run Industry Equilibrium Under Demand Uncertainty: The Locational Effect of Business Taxes

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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

Publication date: February 1, 2003

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