The purpose of this paper is to provide a methodologyfor computing time-consistent, strategic capital taxes in a largeopen economy and to analyze the nature of these taxes. Our resultssuggest that even if a full set of nondistortionary taxes isunavailable and even if the government has...

The purpose of this paper is to provide a methodology for computing time-consistent, strategic capital taxes in a large open economy and to analyze the nature of these taxes. Our results suggest that even if a full set of nondistortionary taxes is unavailable and even if the government has...