Lejour, A.M.; Verbon, H.A.A. - Tilburg University, Center for Economic Research - 1996
capital mobility.Public investment and a public consumption good are financed by a source-based capital-income tax. By … comparing the cases in which countries do and do not coordinate their fiscal policies, it follows that spending on investment ….Coordination of only investment policy decreases the inefficiency of that policy, but it increases the inefficiency of noncoordinated …