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Optimal Export Tax in Terms of Home Country's Adjustment Weight

Treating export tax of a large country as equivalent to a sales tax, this paper derives all formulae at autarky, free trade, and after tax and offers all possible comparisons. All derived formulae are in terms of three adjustment weights of home country and the ratio of inverse demand slopes. For the first time, it derives a formula for the net welfare gain which is a concave quadratic function in export tax. It finds formulae for the optimal export tax and for the maximum net welfare gain.