Capital Taxation May Survive in Open Economies

Michael Braulke and Giacomo Corneo
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Michael Braulke: University of Osnabruck

Annals of Economics and Finance, 2004, vol. 5, issue 2, 237-244

Abstract: Why do capital taxes still exist in an integrated world economy? When capital is perfectly mobile across countries and labour is fixed, a source-based tax on capital both reduces and redistributes world income. In a simple general equilibrium model we show that under plausible circumstances there always exists a country that bene¡¥ts from introducing such a tax. Countries that are richer in terms of human rather than ¡¥nancial capital tend to benefit from capital taxation.

Keywords: International capital taxation; Redistribution; Incidence (search for similar items in EconPapers)
JEL-codes: H2 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Capital Taxation May Survive in Open Economies (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:cuf:journl:y:2004:v:5:i:2:p:237-244

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