Abstract
During the 1970s and 80s public finance economists devoted increasing attention to the taxation of consumption and wages as an attractive alternative to the existing income tax systems, which are widely believed to discourage savings and capital formation. Despite the ongoing internationalization of the western economies, most of these studies of the macroeconomic effects of tax reform have assumed a closed economy. As Slemrod (1988) has noted, economists have only recently begun to realize that the effects of tax policy may change markedly as the economy is opened up to international trade in goods and assets.
All results reported but not explicitly derived in this paper are demonstrated in a technical appendix available from the author. Comments from Pierre Pestieau and Wolfram Richter are gratefully acknowledged, but all remaining errors and shortcomings are of course my own responsibility.
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Sørensen, P.B. (1990). Taxation of Income, Consumption, and Wages in an Open Economy. In: Rose, M. (eds) Heidelberg Congress on Taxing Consumption. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-75791-4_5
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DOI: https://doi.org/10.1007/978-3-642-75791-4_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-75793-8
Online ISBN: 978-3-642-75791-4
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