Services on Demand
Article
Estudios Económicos
On-line version ISSN 2525-1295
Abstract
BEKER, Víctor A.. Retenciones con tipo de cambio flexible. Estud. Econ. [online]. 2019, vol.36, n.73, pp. 191-197. ISSN 2525-1295.
Usually, when analyzing the effect of export taxes it is implicitly assumed that there is a fixed exchange rate. This note discusses the case in which the exchange rate is flexible. It shows that in such a case the export tax is to a greater or lesser extent passed on to the exchange rate. Only in the extreme cases when demand is infinitely elastic or supply is perfectly inelastic the tax burden will fall entirely on the suppliers.
Keywords : Export Taxes; Fixed Exchange Rate; Floating Exchange Rate; Domestic Price; International Price.