publication . Article . 2013

Tourism Tax: Public Spending and Taxation in Tourism Destinations

G. Candela; M. Castellani; M. Mussoni;
Open Access
  • Published: 01 Jan 2013 Journal: Politica economica, issue 3, pages 293-318
  • Country: Italy
Abstract
In this paper we investigate the effects of a Keynesian policy in tourists destinations where tourism products are mainly sold through «direct sales» (decentralized solution) and the tourism market equilibrium is characterized by sticky prices and unemployment (coordination failure). A Keynesian demand policy is a Pareto improving solution with respect to the organization of sales by Tour operators or Destination managers (centralized solution), since tourism firms are not worse-off in terms of profits and there is an increase of tourism production as well as of employment. Furthermore, we study the effects of the tourism tax on the Rimini district, an ideal cas...
Subjects
free text keywords: Keynesian Policies; Coordination Failures; Tourism Tax., Keynesian Policies, Coordination Failures, Tourism Tax
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publication . Article . 2013

Tourism Tax: Public Spending and Taxation in Tourism Destinations

G. Candela; M. Castellani; M. Mussoni;