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Income Tax, Property Tax and Tariff in a Small Open Economy

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  • Charles Ka-Yui Leung

Abstract

Why 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 Info

Paper provided by Chinese University of Hong Kong, Department of Economics in its series Departmental Working Papers with number _104.

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Date of creation: Nov 1998
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Handle: RePEc:chk:cuhked:_104

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Cited by:
  1. Zhang, Yan, 2008. "Tariff and Equilibrium Indeterminacy--(I)," MPRA Paper 8338, University Library of Munich, Germany.
  2. Charles Ka-Yui Leung, 2004. "Macroeconomics and Housing: A Review of the Literature," Departmental Working Papers _164, Chinese University of Hong Kong, Department of Economics.
  3. 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.
  4. Yui Leung, Charles Ka, 2001. "Productivity growth, increasing income inequality and social insurance: the case of China?," Journal of Economic Behavior & Organization, Elsevier, vol. 46(4), pages 395-408, December.

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