Ramsey-optimal tax reforms and real exchange rate dynamics

Autor: Paul Gomme, Aurélien Eyquem, Stéphane Auray
Přispěvatelé: Centre de Recherche en Économie et Statistique (CREST), Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] (ENSAI)-École polytechnique (X)-École Nationale de la Statistique et de l'Administration Économique (ENSAE Paris)-Centre National de la Recherche Scientifique (CNRS), Groupe d'analyse et de théorie économique (GATE Lyon Saint-Étienne), École normale supérieure - Lyon (ENS Lyon)-Université Lumière - Lyon 2 (UL2)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université de Lyon-Université Jean Monnet [Saint-Étienne] (UJM)-Centre National de la Recherche Scientifique (CNRS), Centre interuniversitaire de recherche en économie quantitative (CIREQ), Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne (GATE Lyon Saint-Étienne), École normale supérieure de Lyon (ENS de Lyon)-Université Lumière - Lyon 2 (UL2)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université de Lyon-Université Jean Monnet - Saint-Étienne (UJM)-Centre National de la Recherche Scientifique (CNRS)
Jazyk: angličtina
Rok vydání: 2018
Předmět:
Economics and Econometrics
JEL: E - Macroeconomics and Monetary Economics/E.E3 - Prices
Business Fluctuations
and Cycles/E.E3.E32 - Business Fluctuations • Cycles
Small open economy
Optimal fiscal policy
Welfare
Monetary economics
Tax rate
Microeconomics
JEL: E - Macroeconomics and Monetary Economics/E.E5 - Monetary Policy
Central Banking
and the Supply of Money and Credit/E.E5.E52 - Monetary Policy
Physical capital
Exchange rate
0502 economics and business
Economics
Open economy
050207 economics
ComputingMilieux_MISCELLANEOUS
050205 econometrics
Tax reforms
JEL: F - International Economics/F.F4 - Macroeconomic Aspects of International Trade and Finance/F.F4.F41 - Open Economy Macroeconomics
05 social sciences
1. No poverty
[SHS.ECO]Humanities and Social Sciences/Economics and Finance
Interest rate parity
8. Economic growth
State income tax
Optimal tax
Finance
Zdroj: Journal of International Economics
Journal of International Economics, Elsevier, 2018, 115, pp. 159-169. ⟨10.1016/j.jinteco.2018.09.007⟩
Journal of International Economics, 2018, 115, pp. 159-169. ⟨10.1016/j.jinteco.2018.09.007⟩
ISSN: 0022-1996
DOI: 10.1016/j.jinteco.2018.09.007⟩
Popis: We solve the Ramsey-optimal tax plan for a small open economy with an endogenously-determined real exchange rate. The open economy constrains the government's setting of the capital income tax rate since physical capital cannot be dominated in rate of return by foreign assets. However, the endogenous real exchange rate loosens this constraint relative to a one good open economy model in which the real exchange rate is necessarily fixed. We find that the dynamics of the two good small open economy model more closely resemble those of a closed economy model than a one good small open economy model.
Databáze: OpenAIRE
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