Impact
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The theory of the firm shows that taxes on transfers can encourage firms to internalise costs and grow, whereas the absence of such transactions may result in a larger number of individually smaller firms. For example, a sales tax – unlike a VAT – would realign the incentives of a steel mill in favor of operating its own coal mine, as opposed to simply buying coal in a transaction subject to taxation; the theory of the firm's model suggests that this would be less economically efficient as it results in a decline in specialization.
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Famous quotes containing the word impact:
“As in political revolutions, so in paradigm choice—there is no standard higher than the assent of the relevant community. To discover how scientific revolutions are effected, we shall therefore have to examine not only the impact of nature and of logic, but also the techniques of persuasive argumentation effective within the quite special groups that constitute the community of scientists.”
—Thomas S. Kuhn (b. 1922)
“Conquest is the missionary of valour, and the hard impact of military virtues beats meanness out of the world.”
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“Television does not dominate or insist, as movies do. It is not sensational, but taken for granted. Insistence would destroy it, for its message is so dire that it relies on being the background drone that counters silence. For most of us, it is something turned on and off as we would the light. It is a service, not a luxury or a thing of choice.”
—David Thomson, U.S. film historian. America in the Dark: The Impact of Hollywood Films on American Culture, ch. 8, William Morrow (1977)