Production efficiency and excess supply

Reinhorn, L.

Abstract

This paper demonstrates that intermediate goods should not be taxed even in the presence of dividend payments to households. We also find that optimal government policy in a second best world may include stockpiles of output—private supply exceeds private demand, and the government purchases the surplus. This may provide a possible explanation for some agricultural policies.

Citation

Reinhorn, L. (2012). Production efficiency and excess supply. Mathematical Social Sciences, 65(2), 92-100. https://doi.org/10.1016/j.mathsocsci.2012.09.002

• Journal Article Type: Article
• Acceptance Date: Sep 15, 2012
• Online Publication Date: Oct 4, 2012
• Publication Date: Oct 4, 2012
• Deposit Date: Sep 27, 2012
• Publicly Available Date: Dec 12, 2018
• Journal: Mathematical Social Sciences
• Print ISSN: 0165-4896
• Electronic ISSN: 1879-3118
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 65
• Issue: 2
• Pages: 92-100
• DOI: https://doi.org/10.1016/j.mathsocsci.2012.09.002
• Public URL: https://durham-repository.worktribe.com/output/1473444