Ono, Yoshiyasu (contributor); Shibata, Akihisa (contributor) - 2006
investment taxes have the identical effect, as is the case in a closed-economy context. However, if it is allowed, households can … accumulate foreign assets besides domestic capital and hence saving and investment are separated, causing the two taxes to have … different effects. Using a two-sector growth model, we show that the two taxes generate completely different effects on …