IDEAS home Printed from https://ideas.repec.org/p/ags/isfiwp/275452.html
   My bibliography  Save this paper

Liberalization of the International Capital Markets: Effects on Taxation, Cost of Public Funds and Income Redistribution

Author

Listed:
  • Razin, Assaf
  • Sadka, Efraim

Abstract

International-capital market integration has become a key policy issue in the prospective integration of Europe of 1992. In this context this paper provides a theoretical analysis of the effects of relaxing restrictions on the international flow of capital on the fiscal branch of government: the optimal provision of public goods, the structure of taxation and income redistribution policies. The major findings are: (a) income from investment abroad should be taxed at the same rate as income from domestic sources; (b) the cost of public funds falls and the supply of public goods rises if restrictions on international capital flows are relaxed; and (c) the amount of income redistributions, specifically the value of the demogrant, increases with the international-capital market liberalization.

Suggested Citation

  • Razin, Assaf & Sadka, Efraim, 1988. "Liberalization of the International Capital Markets: Effects on Taxation, Cost of Public Funds and Income Redistribution," Foerder Institute for Economic Research Working Papers 275452, Tel-Aviv University > Foerder Institute for Economic Research.
  • Handle: RePEc:ags:isfiwp:275452
    DOI: 10.22004/ag.econ.275452
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/275452/files/TEL-AVIV-FSWP-129.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.275452?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    Financial Economics; Public Economics;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:isfiwp:275452. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/fotauil.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.