Tax Efficiency in an Open Economy
Author | : Mr.W. R. M. Perraudin |
Publisher | : International Monetary Fund |
Total Pages | : 14 |
Release | : 1990-10-01 |
ISBN-10 | : 9781451950663 |
ISBN-13 | : 1451950667 |
Rating | : 4/5 (667 Downloads) |
Download or read book Tax Efficiency in an Open Economy written by Mr.W. R. M. Perraudin and published by International Monetary Fund. This book was released on 1990-10-01 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: This note assesses the relative efficiency of different tax bases in an open economy. If terms of trade effects are large, lump-sum taxation may be inferior to distortionary consumption or wage taxes. This result is demonstrated analytically using a simple neoclassical model. An overlapping generations, general equilibrium, simulation model is then employed to show the empirical significance of the effects involved.