Capital Income Taxation in a Growing Open Economy
AbstractThe paper studies the dynamic macroeconomic effects of various forms of capital income taxation in a model of a small open economy with perfect mobility of financial capital and intertemporal optimization on the part of households and firms. One of the noteworthy results is that the introduction of a (low) corporate income tax will not affect consumption in the long run, but will simply lead to a replacement of shares by foreign financial assets in household portfolios. It is also found that an anticipated investment tax credit can have and that an anticipated dividend tax will have contractionary effects on investment before they are introduced. Moreover, it is shown that while an unanticipated dividend tax is neutral with respect to investment, it will have real effects on consumption and net foreign assets in a growing economy.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 89-14.
Length: 26 pages
Date of creation: Jul 1989
Date of revision:
Publication status: Published in: European Economic Review, 1991, 35(1) pp 179-97
Contact details of provider:
Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark
Phone: (+45) 35 32 30 10
Fax: +45 35 32 30 00
Web page: http://www.econ.ku.dk
More information through EDIRC
open economy macroeconomic theory; balance of payments and adjustment mechanisms; income tax;
Other versions of this item:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Mikael Apel & Jan Södersten, 1999. "Personal Taxation and Investment Incentives in a Small Open Economy," International Tax and Public Finance, Springer, Springer, vol. 6(1), pages 79-88, February.
- Turnovsky, Stephen J., 1996. "Fiscal policy, growth, and macroeconomic performance in a small open economy," Journal of International Economics, Elsevier, Elsevier, vol. 40(1-2), pages 41-66, February.
- Daisuke Amano & Jun-ichi Itaya & Kazuo Mino, 2014.
"Trade Structure and Growth Effects of Taxation in a Two-Country World,"
KIER Working Papers, Kyoto University, Institute of Economic Research
891, Kyoto University, Institute of Economic Research.
- Amano, Daisuke & Mino, Kazuo, 2014. "Trade Structure and Growth Effects of Taxation in a Two-Country World," Discussion paper series. A, Graduate School of Economics and Business Administration, Hokkaido University 273, Graduate School of Economics and Business Administration, Hokkaido University.
- Daisuke Amano & Jun-ichi Itaya & Kazuo Mino, 2014. "Trade Structure and Growth Effects of Taxation in a Two-Country World," CESifo Working Paper Series 4882, CESifo Group Munich.
- Mourmouras, Iannis A. & Ghosh, Sugata, 2000.
"Fiscal Policies and the Terms of Trade in an Endogenous Growth Model with Overlapping Generations,"
Journal of Macroeconomics, Elsevier,
Elsevier, vol. 22(3), pages 445-470, July.
- Mourmouras, I.A. & Ghosh, S., 1997. "Fiscal policies and the terms of trade in an endogenous growth model with overlapping generations," Discussion Paper Series In Economics And Econometrics 9719, Economics Division, School of Social Sciences, University of Southampton.
- Stephen J. Turnovsky & Marcelo Bianconi, 1992.
"The International Transmission of Tax Policies in a Dynamic World Economy,"
NBER Working Papers
4086, National Bureau of Economic Research, Inc.
- Turnovsky, Stephen J & Bianconi, Marcelo, 1992. "The International Transmission of Tax Policies in a Dynamic World Economy," Review of International Economics, Wiley Blackwell, vol. 1(1), pages 49-72, November.
- Fehr, Hans & Ruocco, Anna, 1999. "Equity and efficiency aspects of the Italian debt reduction," Economic Modelling, Elsevier, Elsevier, vol. 16(4), pages 569-589, December.
- Patrick Asea & Stephen Turnovsky, 1997.
"Capital Income Taxation and Risk-Taking in a Small Open Economy,"
UCLA Economics Working Papers, UCLA Department of Economics
768, UCLA Department of Economics.
- Asea, Patrick K. & Turnovsky, Stephen J., 1998. "Capital income taxation and risk-taking in a small open economy," Journal of Public Economics, Elsevier, Elsevier, vol. 68(1), pages 55-90, April.
- Patrick K. Asea & Stephen J. Turnovsky, 1997. "Capital Income Taxation and Risk-Taking in a Small Open Economy," NBER Working Papers 6189, National Bureau of Economic Research, Inc.
- Shuanglin Lin, 1994. "Capital taxation and accumulation in a growing world economy with deficit finance," International Tax and Public Finance, Springer, Springer, vol. 1(2), pages 127-146, October.
- Shibata, Akihisa & Shintani, Mototsugu, 1998. "Capital mobility in the world economy: an alternative test," Journal of International Money and Finance, Elsevier, Elsevier, vol. 17(5), pages 741-756, October.
- Yasushi Iwamoto & Akihisa Shibata, 1999. "Foreign Tax Credit and the Current Account," International Tax and Public Finance, Springer, Springer, vol. 6(2), pages 131-148, May.
- Shaw, Ming-Fu & Lai, Ching-Chong & Chang, Wen-Ya, 2005. "Anticipated policy and endogenous growth in a small open monetary economy," Journal of International Money and Finance, Elsevier, Elsevier, vol. 24(5), pages 719-743, September.
- Petrucci, Alberto, 2006. "Wealth Accumulation and Growth in a Specific-Factors Model of Trade and Finance," Economics & Statistics Discussion Papers esdp06029, University of Molise, Dept. EGSeI.
- Donald A. R. George (University of Edinburgh), 2013. "Rational Expectations Dynamics: A Methodological Critique," ESE Discussion Papers, Edinburgh School of Economics, University of Edinburgh 217, Edinburgh School of Economics, University of Edinburgh.
- Donald A. R., George & Les, Oxley, 2013. "Rational Expectations Dynamics: A Methodological Critique," SIRE Discussion Papers, Scottish Institute for Research in Economics (SIRE) 2013-45, Scottish Institute for Research in Economics (SIRE).
- Bovenberg, A. Lans & Heijdra, Ben J., 1998. "Environmental tax policy and intergenerational distribution," Journal of Public Economics, Elsevier, Elsevier, vol. 67(1), pages 1-24, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Hoffmann).
If references are entirely missing, you can add them using this form.