TY - JOUR
T1 - Regional finance and competition policy
T2 - The Canary Islands petrol market
AU - Jiménez, Juan Luis
AU - Perdiguero, Jordi
N1 - Copyright:
Copyright 2010 Elsevier B.V., All rights reserved.
PY - 2010/4
Y1 - 2010/4
N2 - Market competition levels affect all agents of an economy: businesses, consumers and the State. Traditional analysis has evaluated the State's effects on the other agents, but no analysis has been conducted regarding the inverse relationship. Thus, the aim of this study is to estimate the tributary income losses that low levels of competition in the retail petrol market could cause in it, using the data from Canary Islands Autonomous Community. First, we will use Parker and Röller's methodology (1997) to measure the level of competition and confirm a deficiency. Then, using estimated rates, we will determine the differences that would appear in tributary income if the market were to behave as a Cournot's model. Our results show that the lack of competition causes a substantial loss of tributary income for this region, somewhere between 5 and 10% of the real income from the tax on unleaded petrol for the year 2004.
AB - Market competition levels affect all agents of an economy: businesses, consumers and the State. Traditional analysis has evaluated the State's effects on the other agents, but no analysis has been conducted regarding the inverse relationship. Thus, the aim of this study is to estimate the tributary income losses that low levels of competition in the retail petrol market could cause in it, using the data from Canary Islands Autonomous Community. First, we will use Parker and Röller's methodology (1997) to measure the level of competition and confirm a deficiency. Then, using estimated rates, we will determine the differences that would appear in tributary income if the market were to behave as a Cournot's model. Our results show that the lack of competition causes a substantial loss of tributary income for this region, somewhere between 5 and 10% of the real income from the tax on unleaded petrol for the year 2004.
UR - http://www.scopus.com/inward/record.url?scp=77951735220&partnerID=8YFLogxK
U2 - 10.1080/00036840701721224
DO - 10.1080/00036840701721224
M3 - Article
AN - SCOPUS:77951735220
VL - 42
SP - 1245
EP - 1255
IS - 10
ER -