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Is Tax Policy Coordination Necessary?

Tryphon Kollintzas (), A. Philippopoulos and V. Vasillatos

DEOS Working Papers from Athens University of Economics and Business

Abstract: The answer to this question is "yes". We examine noncooperative and cooperative equilibria under perfect capital mobility. To this end, we develop a two-country optimal growth model with endogenous national fiscal policies. The channel for interdependence is distortionary income taxes.

Keywords: TAXATION; FISCAL POLICY; ECONOMIC EQUILIBRIUM (search for similar items in EconPapers)
JEL-codes: E62 H21 (search for similar items in EconPapers)
Date: 1999
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