selective key-industry approach to the inflation problem. Section II suggests three characteristics for a good target industry under a regime of selective demand reductions and gives reasons for anticipating that industries will differ in their price and employment responses to demand changes. Section III contains a series of tests—primarily industryprice change and industry employment-demand regressions—designed to help identify those industries that best satisfy the characteristics of a good target industry. Section IV summarizes the findings on the best overall
The domestic taxation of petroleum products is an important source of revenue in most countries. However, there is a wide variation of tax rates on petroleum products across countries, which cannot be explained by economic theory alone. This paper surveys different considerations advanced for taxing petroleum and presents petroleum tax rate data in 120 countries. It concludes that a significant reduction in the present extremely wide variation in petroleum prices and tax rates appears warranted.