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The Effects of Business Taxes on Output and Location of the Firm Under Uncertainty: Comment

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  • Ira Horowitz

    (University of Florida)

Abstract

Yeh, Suwanakul, and Mai (1996) use a triangular production location model to study the impact of various business taxes on the output and location decisions of a competitive firm facing a random price. In this "Comment," it is shown that their results are exclusively output driven, and the very same results would be obtained for any internal or external factor, other than a business tax, that results in an output change.

Suggested Citation

  • Ira Horowitz, 1997. "The Effects of Business Taxes on Output and Location of the Firm Under Uncertainty: Comment," Public Finance Review, , vol. 25(2), pages 254-258, March.
  • Handle: RePEc:sae:pubfin:v:25:y:1997:i:2:p:254-258
    DOI: 10.1177/109114219702500206
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    References listed on IDEAS

    as
    1. Sandmo, Agnar, 1971. "On the Theory of the Competitive Firm under Price Uncertainty," American Economic Review, American Economic Association, vol. 61(1), pages 65-73, March.
    2. Katz, Eliakim, 1984. "The optimal location of the competitive firm under price uncertainty," Journal of Urban Economics, Elsevier, vol. 16(1), pages 65-75, July.
    3. Paroush, Jacob & Kahana, Nava, 1980. "Price Uncertainty and the Cooperative Firm," American Economic Review, American Economic Association, vol. 70(1), pages 212-216, March.
    4. Choi, E. Kwan & Feinerman, Eli, 1991. "Price Uncertainty and the Labor-Managed Firm," Staff General Research Papers Archive 475, Iowa State University, Department of Economics.
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