Strategic Capital Taxation in Large Open Economies with Mobile Capital
AbstractThe purpose of this paper is to provide a methodology for computing time-consistent, strategic capital taxes in a large open economy and to analyze the nature of these taxes. Our results suggest that even if a full set of nondistortionary taxes is unavailable and even if the government has redistributive goals, the country which imports capital should tax corporate capital and the capital exporter should subsidize it. We perform comparative statics experiments to show how strategically chosen taxes vary with the parameters of the model.
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Bibliographic InfoPaper provided by Birkbeck, Department of Economics, Mathematics & Statistics in its series Archive Discussion Papers with number 9608.
Date of creation: 1996
Date of revision:
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Other versions of this item:
- Jiming Ha & Anne Sibert, 1997. "Strategic Capital Taxation in Large Open Economies with Mobile Capital," International Tax and Public Finance, Springer, vol. 4(3), pages 243-262, July.
- Jiming Ha & Anne Sibert, 1992. "Strategic capital taxation in large, open economies with mobile capital," Research Working Paper 92-01, Federal Reserve Bank of Kansas City.
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
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