Tax Effects on the Real Exchange Rate

Stacie Beck and Cagay Coskuner
Additional contact information
Cagay Coskuner: Eastern Mediterranean University

No 03-11, Working Papers from University of Delaware, Department of Economics

Abstract: This study examines the effects of taxes on the real exchange rate through their marginal impacts on economic activity. We develop a model that shows that an increase in the capital interest tax rate leads to real domestic currency depreciation while an increase in wage or consumption tax rates lead to a real domestic currency appreciation. These theoretical findings are supported by an empirical study using panel data estimations of ten OECD countries over 17 years.

Keywords: Fiscal Policy; Taxation; Real Exchange Rates (search for similar items in EconPapers)
JEL-codes: C23 F31 F41 H30 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Review of International Economics, forthcoming, 2007.

Downloads: (external link)
http://graduate.lerner.udel.edu/sites/default/file ... 2003/UDWP2003-11.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://graduate.lerner.udel.edu/sites/default/files/ECON/PDFs/RePEc/dlw/WorkingPapers/2003/UDWP2003-11.pdf [301 Moved Permanently]--> https://lerner.udel.edu/sites/default/files/ECON/PDFs/RePEc/dlw/WorkingPapers/2003/UDWP2003-11.pdf)

Related works:
Journal Article: Tax Effects on the Real Exchange Rate (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dlw:wpaper:03-11

Access Statistics for this paper

More papers in Working Papers from University of Delaware, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Saul Hoffman ().