Ramsey Taxation in the Global Economy

Varadarajan Chari, Juan Pablo Nicolini and Pedro Teles

No 745, Working Papers from Federal Reserve Bank of Minneapolis

Abstract: We study cooperative optimal Ramsey equilibria in the open economy addressing classic policy questions: Should restrictions be placed to free trade and capital mobility? Should capital income be taxed? Should goods be taxed based on origin or destination? What are desirable border adjustments? How can a Ramsey allocation be implemented with residence-based taxes on assets? We characterize optimal wedges and analyze alternative policy implementations.

Keywords: Capital income tax; Free trade; Value-added taxes; Border adjustment; Origin- and destination-based taxation; Production efficiency (search for similar items in EconPapers)
JEL-codes: E60 E61 E62 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2017-12-11
New Economics Papers: this item is included in nep-dge, nep-int, nep-mac, nep-pbe and nep-pub
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Working Paper: Ramsey Taxation in the Global Economy (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmwp:745

DOI: 10.21034/wp.745

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