CAPITAL INCOME TAXATION AND WELFARE IN A SMALL OPEN-ECONOMY

Authors
KARAYALCIN C
Citation
C. Karayalcin, CAPITAL INCOME TAXATION AND WELFARE IN A SMALL OPEN-ECONOMY, Journal of international money and finance, 14(6), 1995, pp. 785-800
Citations number
31
Categorie Soggetti
Business Finance
Journal title
Journal of international money and finance → ACNP
ISSN journal
02615606
Volume
14
Issue
6
Year of publication
1995
Pages
785 - 800
Database
ISI
SICI code
0261-5606(1995)14:6<785:CITAWI>2.0.ZU;2-7
Abstract
The paper studies the effects of various capital income tax policies i n a small open economy. Households are infinitely-lived and possess en dogenous time preferences. Investment by firms is subject to adjustmen t costs. It is shown that welfare paradoxes may exist, in that increas es in tax instruments may improve welfare.