The Economic and Welfare Effects of Taxing Foreign Assets
This paper develops a two-country portfolio model to analyse the portfolio-composition, interest-rate and welfare effects of taxing foreign equity. Taxes reduce or increase trade in financial assets, depending on the type of taxation. The same goes for the effects of taxes on the differential between the expected rate of return on equity and the interest rate on bonds. In contrast, welfare effects are unambiguous. In the case of perfect as well as that of imperfect substitution of domestic and foreign goods, it is optimal to leave foreign equity untaxed.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
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.
|Date of creation:|
|Contact details of provider:|| Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark|
Phone: (+45) 3532 4411
Fax: +45 35 32 30 00
Web page: http://www.econ.ku.dk/epru/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:kud:epruwp:94-03. 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: (Thomas Hoffmann)
If references are entirely missing, you can add them using this form.