OS IMPACTOS DOS INCENTIVOS FISCAIS SOBRE A ESTRUTURA INDUSTRIAL E SOBRE A COMPETITIVIDADE DAS FIRMAS
DOI:
https://doi.org/10.61673/ren.1998.2102Keywords:
Tax Incentives, Industrial Structure, Competitiviness.Abstract
Based upon Cournot’s model of duopoly, an analitical model is created. With this model, we seek to understand the impacts of the entry of a new firm in the market, when it receives tax incentives from the government. First, we derive a closed model with three firms and then we draw some conclusions about it. Afterwards, an external market is included on the model and all possible equilibria are analysed. We then investigate the effects of such a policy on the production, profitability and competitiveness of the firms. This analysis makes clear the importance of knowing all the specific characteristics of each market as a condition for the public policy to have the positive effects desired by the Government and by society as a whole.




