Description
Subtract a supplied per-unit export tax from a world-price reference.
International economic quantities depend on currency quotation, valuation base, denominator, accounting boundary and reporting period. A unit value differs from a comparable price, while import penetration can exceed one under a supplied absorption definition. Tax, ownership and counterfactual terms remain explicit scenarios rather than verified economic facts.
Subtract a supplied per-unit export tax from a world-price reference.
When to use this tool
Use Export Tax Domestic Price Wedge when you already have worldPrice, suppliedExportTaxPerUnit and need to subtract a supplied per-unit export tax from a world-price reference.
How to use the tool and how it works
- Enter worldPrice, suppliedExportTaxPerUnit. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read domesticNetPrice, priceWedge. Use the output convention below.
Require taxPerUnit>=0; return worldPrice-tax and the supplied tax as priceWedge.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| worldPrice | World Price | Required. Finite number. |
| suppliedExportTaxPerUnit | Supplied Export Tax Per Unit | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| domesticNetPrice | Domestic Net Price | Required. Finite number. |
| priceWedge | Price Wedge | Required. Finite number. |
{
"input": {
"worldPrice": 100,
"suppliedExportTaxPerUnit": 10
},
"output": {
"domesticNetPrice": 90,
"priceWedge": 10
}
}Limitations and assumptions
- Negative prices are retained; units must match and no incidence, actual domestic price, applicable tax or market equilibrium is determined.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use the complete underlying accounts, price indices, trade definitions and applicable source rules for an actual comparison. Reconcile valuation, timing, currency and coverage before interpreting a residual or weighted contribution as a broader economic result.
References
Similar or alternative tools
- Export Domestic Foreign Value Added Pair
Calculate a residual and assigned share for supplied export value-added components.
- Import Content Export Value Share
Calculate imported content's share of a supplied export value.