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Ramsey Taxation in the Global Economy

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  • Teles, Pedro
  • Nicolini, Juan Pablo
  • Chari, V. V.

Abstract

We study cooperative optimal Ramsey equilibria in the open economy addressing classic policy questions: Should restrictions be placed to free trade and capital mobility? Should capital income be taxed? Should goods be taxed based on origin or destination? What are desirable border adjustments? How can a Ramsey allocation be implemented with residence-based taxes on assets? We characterize optimal wedges and analyze alternative policy implementations.

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  • Teles, Pedro & Nicolini, Juan Pablo & Chari, V. V., 2018. "Ramsey Taxation in the Global Economy," CEPR Discussion Papers 12753, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:12753
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    Cited by:

    1. Stéphane Auray & Devereux Michael B. & Aurélien Eyquem, 2020. "Trade Wars, Currency Wars," Post-Print halshs-03031833, HAL.

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    More about this item

    Keywords

    Capital income tax; Free trade; Value-added taxes; Border adjustment; Origin- and destination-based taxation; Production e;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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