Friday, July 15, 2011

MARK UP MARKETS FACE THE UNITS PROBLEM

value added taxes don't care what combo of p's and q's make up a firms va
but the mark up market warrant match does

what's to stop firm level  p and q fudging ???

one has the prior periods declared unit pricing
and this periods declared unit pricing
and one has the two periods patterns of unit inputs and outputs
all this can be hooked into the vendors and customers "numbers "

a massive input output  firm  to firm matrix emerges

can computers flag unusual changes  in "real  "imputs  and outputs ???

at any rate step one has to be a brutal penalty for fraud