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Is Tax Policy Coordination Necessary?

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

Athens University of Economics and Business from Athens University of Economics and Business, Department of International and European Economic Studies

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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