The answer to this question is "yes". We examine noncooperative and cooperative equilibria under perfect capital mobility. To this end, we develop a two-country optimal growth model with endogenous national fiscal policies. The channel for interdependence is distortionary income taxes.
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Paper provided by Athens University of Economics and Business, Department of International and European Economic Studies in its series Athens University of Economics and Business with number
110.
Length: 30 pages Date of creation: 1999 Date of revision: Handle: RePEc:fth:athebu:110
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Find related papers by JEL classification: E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
References listed on IDEAS 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.:
Chari, V V & Kehoe, Patrick J, 1990.
"Sustainable Plans,"
Journal of Political Economy,
University of Chicago Press, vol. 98(4), pages 783-802, August.
[Downloadable!] (restricted)
Other versions:
V.V. Chari & Patrick J. Kehoe, 1989.
"Sustainable plans,"
Staff Report
122, Federal Reserve Bank of Minneapolis.
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