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The principle of second best states that if previously existing distortions exist, a distortionary tax may actually improve efficiency. the broader based the tax, the
The principle of second best states that if previously existing distortions exist, a distortionary tax may actually improve efficiency. the broader based the tax, the less distortionary it is. the more inelastic the demand for a product, the less distortionary a tax on the product would be. taxes should be constructed so that they are neutral
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International Business
Authors: Michael Czinkota, Iikka A. Ronkainen, Michael H. Moffett
8th edition
470530658, 470530650, 978-0470530658
