Capital Controls, Collection Costs, and Domestic Public Debt
The implications of a large public debt for the implementation of capital controls for an economy where tax revenue collection is costly are examined. Conditions are analyzed under which policymakers will resort to capital controls to reduce the cost of recycling domestic public debt. The linkages between a costly tax collection mechanism, capital controls, am domestic government debt are explored in terms of a two-period m:x1el of optimal taxation. Numerical simulations are provided to illustrate haw capital controls are linked to different domestic public debt levels am to different degrees of efficiency in tax-revenue collection.
|Date of creation:||Sep 1990|
|Date of revision:|
|Publication status:||published as Journal of International Money and Finance, Vol. 13, no. 1, pp. 41-54, (February 1994).|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
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- Alesina, Alberto F & Tabellini, Guido, 1988.
"External Debt, Capital Flight and Political Risk,"
CEPR Discussion Papers
253, C.E.P.R. Discussion Papers.
- Tabellini, Guido & Alesina, Alberto, 1989. "External Debt, Capital Flight and Political Risk," Scholarly Articles 4553019, Harvard University Department of Economics.
- Alberto Alesina & Guido Tabellini, 1988. "External Debt, Capital Flight and Political Risk," UCLA Economics Working Papers 538, UCLA Department of Economics.
- Alberto Alesina & Guido Tabellini, 1988. "External Debt, Capital Flight and Political Risk," NBER Working Papers 2610, National Bureau of Economic Research, Inc.
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"On the Determination of the Public Debt,"
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- repec:pal:imfstp:v:37:y:1990:i:2:p:311-337 is not listed on IDEAS
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