Export taxes: the case of a floating exchange rate

Authors

  • Víctor A. Beker Universidad de Belgrano, Argentina

DOI:

https://doi.org/10.52292/j.estudecon.2019.1871

Keywords:

Export Taxes, Fixed exchange rate, Floating exchange rate, Domestic price, International price

Abstract

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.

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Published

2019-12-20

How to Cite

Beker, V. A. (2019). Export taxes: the case of a floating exchange rate. Estudios económicos, 36(73), 191–197. https://doi.org/10.52292/j.estudecon.2019.1871

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Notes and Comments