Gains from Trade in Tax Revenue and the Efficiency Case for Trade Taxes
AbstractThe paper analyses the gains from trade in distortionary tax revenue between countries, focussing on the case where lump-sum reveue transfers are restricted. In this case, trade taxes can be used to transfer government revenue between countries, and such taxes will typically be used in Pareto-efficient international equilibria. Global production efficiency conditions are often, though not always, satisfied at Pareto-efficient allocations involving trade taxes, but the implications for international taxation differ from those that have been put forward on the basis of the Diamond-mirrlees production efficiency theorem.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 897.
Date of creation: 2003
Date of revision:
This paper has been announced in the following NEP Reports:
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.:
- Haufler,Andreas, 2001.
"Taxation in a Global Economy,"
Cambridge University Press, number 9780521782760, October.
- Michael Keen & David E. Wildasin, 2001.
"Pareto Efficiency in International Taxation,"
- Alan J. Auerbach, 1986.
"The Theory of Excess Burden and Optimal Taxation,"
NBER Working Papers
1025, National Bureau of Economic Research, Inc.
- Diamond, Peter A & Mirrlees, James A, 1971. "Optimal Taxation and Public Production: I--Production Efficiency," American Economic Review, American Economic Association, vol. 61(1), pages 8-27, March.
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