where [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] denotes the monopoly reaction to variations in the ad valorem tax rate and where [micro] = (a + [Alpha])d + [Beta] c.
The ad valorem tax achieves the ex post optimum on average if d = 0 and for sure if c [Phi] = de, or f = b + (de/c).
As in the case of competition, however, this comparison is largely irrelevant because the ad valorem tax is never dominated by both other policies at once.
Using equations (2) and (14) to compare the quota and ad valorem tax reveals that the ad valorem tax achieves higher (lower) expected welfare whenever [Phi] [is less than] ([is greater than]) [[Phi].
Comparing the two tax forms, equations (13) and (14) show that the specific tax achieves higher (lower) expected welfare than the ad valorem tax whenever [Phi] [is less than] ([is greater than]) [[Phi].
The ad valorem tax is never dominated by both other policies at once, and its relative welfare performance improves as uncertainty increases.
Thus, the range of marginal damage slopes for which the quota is the most preferred policy is smaller under monopoly than it is under competition, while the range of marginal damage slopes for which the specific tax is preferred to the ad valorem tax is larger under monopoly.
An equiproportional ad valorem tax between a pair of commodities i and j is optimum if the sum of the price elasticities of both demand and supply equals their product.
Since an ad valorem tax on gross demand prices is often practiced, it is appropriate to calculate the optimum tax ratios so that the excess burden is minimized.
In this paper, we prove that the Ramsey optimum taxation rule under the demand ad valorem tax is exactly the same as that under the supply ad valorem tax proved by Ramsey in 1927.
If a majority of the court were to adopt the central theme of the dissenting opinions, then any debt obligation that could potentially be paid from ad valorem tax revenues would be subject to the same referendum requirement currently applicable only to debt obligations directly pledging the power to levy taxes, an interpretation that would effectively undermine a powerful and effective tool to provide much needed infrastructure in the state.
In other words, the funds are measured by the ad valorem tax revenues attributable to increased taxable values, but they are not required to be appropriated from ad valorem taxes.