The seesaw principle in international tax policy
The standard analysis of the optimal international tax policy of a small country typically assumes that the country either imports or exports capital, but does not do both. This paper considers the situation in which a small country both exports and imports capital and can alter its tax on one or the other, but not both. In each case, a 'seesaw' relationship is identified, in which the optimal tax on the income from capital exports (imports) is inversely related to the given tax rate on income from capital imports (exports). The standard results for optimal taxation of capital exports and imports are shown to be special cases of the more general seesaw principle.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Feldstein, Martin S, 1978.
"The Welfare Cost of Capital Income Taxation,"
Journal of Political Economy,
University of Chicago Press, vol. 86(2), pages S29-51, April.
- Gordon, Roger H, 1986. "Taxation of Investment and Savings in a World Economy," American Economic Review, American Economic Association, vol. 76(5), pages 1086-1102, December.
- Bond, E.W. & Samuelson, L., 1988.
"Strategic Behavior And The Rules For International Taxation Of Capital,"
3-88-10, Pennsylvania State - Department of Economics.
- Bond, Eric W & Samuelson, Larry, 1989. "Strategic Behaviour and the Rules for International Taxation of Capital," Economic Journal, Royal Economic Society, vol. 99(398), pages 1099-1111, December.
- Slemrod, Joel, 1993.
"A North-South Model of Taxation and Capital Flows,"
Public Finance = Finances publiques,
, vol. 48(3), pages 430-47.
- Joel Slemrod, 1990. "A North-South Model of Taxation and Capital Flow," NBER Working Papers 3238, National Bureau of Economic Research, Inc.
- Slemrod, J., 1990. "A North-South Model Of Taxation And Capital Flows," Working Papers 257, Research Seminar in International Economics, University of Michigan.
- Martin Feldstein & David G. Hartman, 1980. "The Optimal Taxation of Foreign Source Investment Income," NBER Working Papers 0193, National Bureau of Economic Research, Inc.
- Joel Slemrod & Carl Hansen & Roger Procter, 1994.
"The Seesaw Principle in International Tax Policy,"
NBER Working Papers
4867, National Bureau of Economic Research, Inc.
- Joel Slemrod, 1994.
"Free-Trade Taxation and Protectionist Taxation,"
NBER Working Papers
4902, National Bureau of Economic Research, Inc.
- Dutton, John, 1982. "The Optimal Taxation of International Investment Income: A Comment," The Quarterly Journal of Economics, MIT Press, vol. 97(2), pages 373-80, May.
- Jacob Frenkel & Assaf Razin & Efraim Sadka, 1991.
"International Taxation in an Integrated World,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262512149, June.
- G. D. A. MacDougall, 1960. "THE BENEFITS and COSTS OF PRIVATE INVESTMENT FROM ABROAD: A THEORETICAL APPROACH," The Economic Record, The Economic Society of Australia, vol. 36(73), pages 13-35, 03.
- Bruce, N., 1991.
"A Note on the Taxation of International Capital Income Flows,"
Discussion Papers in Economics at the University of Washington
91-10a, Department of Economics at the University of Washington.
- Bruce, Neil, 1992. "A Note on the Taxation of International Capital Income Flows," The Economic Record, The Economic Society of Australia, vol. 68(202), pages 217-21, September.
- Bruce, N., 1991. "A Note on the Taxation of International Capital Income Flows," Working Papers 91-10a, University of Washington, Department of Economics.
- Assaf Razin & Efraim Sadka, 1990. "Integration of International Capital Markets: The Size of Government and Tax Coordination," NBER Chapters, in: Taxation in the Global Economy, pages 331-356 National Bureau of Economic Research, Inc.
- Gordon, Roger H, 1992.
" Can Capital Income Taxes Survive in Open Economies?,"
Journal of Finance,
American Finance Association, vol. 47(3), pages 1159-80, July.
- Roger H. Gordon, 1990. "Can Capital Income Taxes Survive in Open Economies?," NBER Working Papers 3416, National Bureau of Economic Research, Inc.
- David G. Hartman, 1985. "On the Optimal Taxation of Capital Income in the Open Economy," NBER Working Papers 1550, National Bureau of Economic Research, Inc.
- Mintz, J. & Tulkens, H., 1984.
"Commodity tax competition between member states of a federation: equilibrium and efficiency,"
CORE Discussion Papers
1984027, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Mintz, Jack & Tulkens, Henry, 1986. "Commodity tax competition between member states of a federation: equilibrium and efficiency," Journal of Public Economics, Elsevier, vol. 29(2), pages 133-172, March.
- Ravi Kanbur & Michael Keen, 1991.
"Jeux Sans Frontieres: Tax Competition and Tax Coordination when Countries Differ in Size,"
819, Queen's University, Department of Economics.
- Kanbur, Ravi & Keen, Michael, 1993. "Jeux Sans Frontieres: Tax Competition and Tax Coordination When Countries Differ in Size," American Economic Review, American Economic Association, vol. 83(4), pages 877-92, September.
- Findlay, Christopher C, 1986. "Optimal Taxation of International Income Flows," The Economic Record, The Economic Society of Australia, vol. 62(177), pages 208-14, June.
- Murray C. Kemp, 1962. "Foreign Investment And The National Advantage," The Economic Record, The Economic Society of Australia, vol. 38(81), pages 56-62, 03.
- Assaf Razin & Efraim Sadka, 1989. "Integration of the International Capital Markets: The Size of Government and Tax Coordination," NBER Working Papers 2863, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:eee:pubeco:v:65:y:1997:i:2:p:163-176. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.