A Review on Dynamic Optimal Taxation Theory Under Monopoly Competition
Dynamic optimal taxation theory under monopoly competition provides new ideas for implementing differentiated optimal correction taxation from a dynamic perspective,and has become an important branch of optimal taxation research.This theory builds upon advancements in the study of micro-level consumer and producer behavior,as well as the development of macro-level dynamic stochastic general equilibrium models.In contrast to the optimal taxation theory in a perfectly competitive market,the monopoly competition framework offers a more realistic backdrop for analysis.Compared to static optimal taxation theory,it better captures the dynamic evolution of optimal taxation in response to economic cycle fluctuations.Furthermore,unlike the optimal taxation smoothing theory,which aims to minimize social welfare losses arising from tax distortions,the monopoly competition dynamic optimal taxation theory emphasizes the critical role of correcting economic efficiency losses caused by monopolies and enhancing social welfare.This theory has witnessed numerous new research advancements,underscoring its significant academic value.Expanding its research scope by incorporating practical considerations holds immense importance for the formulation and implementation of effective optimal taxation policies.