international transmission of fiscal policy among open interdependent economies
under free international capital mobility. With only lump-sum taxes and
transfers, international transmission involves only pecuniary externalities:
barring dynamic inefficiency, only distributional issues (intergenerational and
international) are involved. With age-specific taxes and transfers, the
ability to run deficits and issue debt does not enhance the choice set of the
Source-based taxes on the rentals from capital and residence-based taxes
on all property income are also studied.
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