Yeh, Suwanakul, and Mai (1996) use a triangular production location model to study
the impact of various business taxes on the output and location decisions of a
competitive firm facing a random price. In this "Comment," it is shown that their
results are exclusively output driven, and the very same results would be obtained
for any internal or external factor, other than a business tax, that results in an output
change.
Get full access to this article
View all access options for this article.
References
1.
Choi, E. K., and E. Feinerman.1991. Price uncertainty and the labor-managedfirm . Southern Economic Journal58:43-53.
2.
Katz, E.1984. The optimal location of the competitive firm under priceuncertainty. Journal of Urban Economics16:64-75.
3.
Paroush, J., and N. Kahana.1980. Price uncertainty and the cooperative firm. American Economic Review70:212-16.
4.
Sandmo, A.1971. On the theory of the competitive firm under priceuncertainty. American Economic Review61:65-73.
5.
Ward, B.1958. The firm in Illyria: Market syndicalism. American Economic Review48:566-89.
6.
Yeh, C. -N., S. Suwanakul , and C. -C. Mai.1996. Effects of business taxes and location of the firm under uncertainty. Public Finance Quarterly24:99-119.