Income Tax, Property Tax, and Tariff in a Small Open Economy
AbstractWhy do some countries enjoy high economic growth rates while some suffer in "low-growth traps"? Why are tax policies in different countries so different? Some suggest that it is exactly these differences in government policies which contribute to the difference in economic growth rates. This paper considers a small open economy which sustains its economic growth by adopting new technologies. When the value of initial wealth is "relatively small," policies which promote growth most result in the highest welfare. In other cases, policies that discourage growth most may be welfare-maximizing. Copyright 1999 by Blackwell Publishing Ltd.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of International Economics.
Volume (Year): 7 (1999)
Issue (Month): 3 (August)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576
Other versions of this item:
- Charles Ka-Yui Leung, 1998. "Income Tax, Property Tax and Tariff in a Small Open Economy," Departmental Working Papers _104, Chinese University of Hong Kong, Department of Economics.
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- Creina Day & Garth Day, 2007. "Fiscal Reform, Growth and Current Account Dynamics," ANU Working Papers in Economics and Econometrics 2007-485, Australian National University, College of Business and Economics, School of Economics.
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