Open Access. Powered by Scholars. Published by Universities.®
Social and Behavioral Sciences Commons™
Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Social and Behavioral Sciences
Efficiency-Inducing Taxation For A Monopolistically Supplied Depletable Resource, Ted Bergstrom, John Cross, Dick Porter
Efficiency-Inducing Taxation For A Monopolistically Supplied Depletable Resource, Ted Bergstrom, John Cross, Dick Porter
Ted C Bergstrom
We show that for a depletable resource, if the competitive time path of prices is known, and if the profit function is concave, then there is an easily described time path of taxes and/or subsidies that would induce a monopolist to follow an efficient time path of extraction.