Description |
1 online resource (28 pages) |
Series |
IMF working paper, 2227-8885 ; WP/04/91 |
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IMF working paper ; WP/04/91
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Contents |
""Contents""; ""I. INTRODUCTION""; ""II. THE MODEL""; ""III. TAX INTERDEPENDENCIES IN OPEN ECONOMIES""; ""IV. THE EFFECT OF TAXATION IN A TWO- COUNTRY WORLD""; ""V. CONCLUSIONS""; ""APPENDIX I. TWO- COUNTRY MODEL WITH COBB- DOUGLAS UTILITY AND PRODUCTION FUNCTIONS""; ""REFERENCES"" |
Summary |
Do reductions in capital income taxes attract foreign capital and, at the same time, foster economic growth? This paper examines the effect of capital income taxation on the international allocation of capital and on economic growth in a two-country overlapping generations model with endogenous growth and internationally mobile capital. It shows that domestic capital taxes affect both the international allocation of capital and the rate of economic growth and that these two effects are not necessarily the same. A country can increase its share of the existing world capital by changing its taxes but, depending on the elasticity of saving to after-tax returns, this may reduce the rate of capital accumulation and economic growth |
Bibliography |
Includes bibliographical references |
Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
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digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
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Print version record |
Subject |
Capital gains tax -- Econometric models
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Economic development -- Econometric models
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Capital gains tax -- Econometric models
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Economic development -- Econometric models
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Form |
Electronic book
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Author |
International Monetary Fund. Fiscal Affairs Department
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ISBN |
1451897375 |
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9781451897371 |
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1281600792 |
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9781281600790 |
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9781451851540 |
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1451851545 |
ISSN |
2227-8885 |
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