Capital privado y competencia internacional: la armonización fiscal nunca es suficiente

This paper analyzes the international transmission of the fiscal policy when the public expenditure presents a positive externality on the private factors of production, capital and labor. We propose a general equilibrium model with N symmetric countries where there exists perfect mobility in private capital but not in labor. The results show that a fiscal expansion generates a "crowding-out" effect on capital of the neighbor countries. Whenever the number of countries is large enough, an increase in public expenditure always causes a "crowding-in" on the domestic private capital. (Copyright: Fundación Empresa Pública)