Email this article Application of a dynamic stochastic market model to analyze the effect of introducing product taxes and licenses
- Authors: Buglevsky E.A1, Antonenko V.S2
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Affiliations:
- Saint-Petersburg State University
- National Research University Higher School of Economics
- Issue: Vol 4, No 2 (2025)
- Pages: 17-31
- Section: Articles
- URL: https://ogarev-online.ru/2949-4648/article/view/378757
- ID: 378757
Cite item
Abstract
the purpose of the study is to develop a dynamic stochastic market model and apply it to identify the effects of implementing product taxes and licenses. Methods: the study utilizes mathematical methods for analyzing markets with imperfect competition. Findings: the research presents a computationally simple dynamic model of an industry with heterogeneous firms, enabling the exploration of tax and license effects. Corresponding effects were investigated and described in detail, with computational simulations conducted to confirm analytically derived conclusions. Conclusions: The analysis of the impact of product taxes and licenses on market equilibrium was conducted. Licenses reduce the number of firms and increase costs, decreasing average firm efficiency. Product taxes, while reducing the number of firms, increase their average efficiency despite unchanged prices. The results indicate that market structure is primarily determined by entry barriers for new participants.
About the authors
E. A Buglevsky
Saint-Petersburg State University
Email: g.lichtenfield@gmail.com
V. S Antonenko
National Research University Higher School of Economics
Email: lesnoyotkaz@yandex.ru
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