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Taxation of Investment and Savings in a World Economy

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Author Info
Gordon, Roger H

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Abstract

The equilibrium of capital and equilibrium market prices are derived for a world economy with a unified securities market, mobile capital, no uncertainty, and varying tax rates on different sources of income in each country. The paper then characterizes optimal tax rates for a small country in this setting, focusing on the peculiar incentives created when the before-tax rate of return differs among securities due to differences in their typical tax treatment. Copyright 1986 by American Economic Association.

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Publisher Info
Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 76 (1986)
Issue (Month): 5 (December)
Pages: 1086-1102
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Handle: RePEc:aea:aecrev:v:76:y:1986:i:5:p:1086-1102

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This page was last updated on 2009-11-16.

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