Fiscal Policy Interdependence And Efficiency
AbstractThis paper uses a two-country overlapping generations model to study the international transmission of fiscal policy among open interdependent economies under free international capital mobility. With only lump-sum taxes and transfers, international transmission involves only pecuniary externalities: barring dynamic inefficiency, only distributional issues (intergenerational and international) are involved. With age-specific taxes and transfers, the ability to run deficits and issue debt does not enhance the choice set of the governments. Source-based taxes on the rentals from capital and residence-based taxes on all property income are also studi.
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Bibliographic InfoPaper provided by Yale - Economic Growth Center in its series Papers with number 611.
Length: 49 pages
Date of creation: 1990
Date of revision:
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fiscal policy ; income ; economic models;
Other versions of this item:
- Buiter, Willem H & Kletzer, Kenneth, 1990. "Fiscal Policy Interdependence and Efficiency," CEPR Discussion Papers 419, C.E.P.R. Discussion Papers.
- Willem H. Buiter & Kenneth M. Kletzer, 1990. "Fiscal Policy Interdependence and Efficiency," NBER Working Papers 3328, National Bureau of Economic Research, Inc.
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- Willem H. Buiter & Kenneth M. Kletzer, 1995.
"Capital Mobility, Fiscal Policy and Growth under Self-Financing of Human Capital Formation,"
NBER Working Papers
5120, National Bureau of Economic Research, Inc.
- Willem H. Buiter & Kenneth M. Kletzer, 1995. "Capital Mobility, Fiscal Policy, and Growth under Self-Financing of Human Capital Formation," Canadian Journal of Economics, Canadian Economics Association, vol. 28(s1), pages 163-94, November.
- Buiter, Willem H & Kletzer, Kenneth, 1995. "Capital Mobility, Fiscal Policy and Growth Under Self-Financing of Human Capital Formation," CEPR Discussion Papers 1179, C.E.P.R. Discussion Papers.
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