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Tax Competition and Redistribution in a Two-Country Endogenous-Growth Model Author info | Abstract | Publisher info | Download info | Related research | Statistics Arjan Lejour ()
Harrie Verbon ()
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This paper examines the effects of policy coordinationin a two-country world with endogenous growth and imperfect capitalmobility. Redistribution is financed by a source-based capital-incometax. Comparing the cases in which countries do and do not coordinatetheir fiscal policies, it is shown that redistribution can beinefficiently high if fiscal policies are not coordinated. Thisis because the negative effects of fiscal policy on home savingsaffect economic growth abroad by inducing a decline in foreigninvestment. This externality can dominate the well-known tax-baseexternality. Copyright Kluwer Academic Publishers 1997
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Article provided by Springer in its journal International Tax and Public Finance .
Volume (Year): 4 (1997)
Issue (Month): 4 (November)
Pages: 485-497
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Handle: RePEc:kap:itaxpf:v:4:y:1997:i:4:p:485-497Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=102915
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Keywords: Endogenous Growth ; Tax Competition ; Economic Integration ; Capital Mobility ; Other versions of this item:
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Michael Rauscher, 2005.
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Other versions: Daniel Becker, 2005.
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Daniel Becker & Michael Rauscher, 2007.
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Rauscher, Michael, 2004.
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Other versions: Koethenbuerger, Marko & Lockwood, Ben, 2007.
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Andreas Schäfer & Thomas Steger, 2007.
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Floriana Cerniglia & Riccarda Longaretti, 2008.
"Federalism, Education-Related Public Good and Growth when Agents are Heterogeneou ,"
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