Export taxes: the case of a floating exchange rate

Usually, when analyzing the effect of export taxes it is implicitly assumed that there is a fi xed exchange rate. This note discusses the case in which the exchange rate is fl exible. It shows that in such a case the export tax is to a greater or lesser extent passed on to the exchange rate. Only in...

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Autor Principal: Beker, Víctor A.
Formato: Online
Idioma:spa
Publicado: EdiUNS 2019
Acceso en línea:https://revistas.uns.edu.ar/ee/article/view/1871
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Sumario:Usually, when analyzing the effect of export taxes it is implicitly assumed that there is a fi xed exchange rate. This note discusses the case in which the exchange rate is fl exible. It shows that in such a case the export tax is to a greater or lesser extent passed on to the exchange rate. Only in the extreme cases when demand is infinitely elastic or supply is perfectly inelastic the tax burden will fall entirely on the suppliers.