Capital Income Taxation in a Growing World Economy

Søren Nielsen

No 89-20, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: This paper deals with dynamic adjustment in large economies to changes in the rate of capital income taxation or in the rate of investment tax credit in one country. The framework applied in the paper is a continuous-time, overlapping generations model with two countries. It features population growth and debt non-neutrality. We address impact and steady state effects of capital income tax and investment subsidy changes in the home country on consumption per capita, the capital intensity, and the per capita net foreign asset position in both countries.

Keywords: open economy macroeconomic theory; fiscal theory; debt; tax (search for similar items in EconPapers)
JEL-codes: E62 F41 (search for similar items in EconPapers)
Pages: 24 pages
Date: 1989-10
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Published in: Journal of Economics/Zeitschrift für Nationalokonomie, 1992, 55(1) pp 77-99

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Journal Article: Capital income taxation in a growing world economy (1992)
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Persistent link: https://EconPapers.repec.org/RePEc:kud:kuiedp:8920

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