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The Scope for Taxation and Public Expenditure in an Open Economy

  • Christiansen, Vidar
  • Hagen, Kare P
  • Sandmo, Agnar
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    In this survey of some central issues of tax and expenditure policy in an open economy, the authors consider the implications for policy of free--although not necessarily perfect--international mobility of commodities, capital, and labor. They examine the issues both from a positive and a normative point of view, trying to identify both the incidence and welfare effects of international mobility. One general conclusion is that tax distortions may increase in magnitude in comparison with a closed economy but they may also increase in kind, as when otherwise neutral taxes become distortionary because of factor mobility. Copyright 1994 by The editors of the Scandinavian Journal of Economics.

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    Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

    Volume (Year): 96 (1994)
    Issue (Month): 3 ()
    Pages: 289-309

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    Handle: RePEc:bla:scandj:v:96:y:1994:i:3:p:289-309
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