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This paper characterises the domestic tax systems which yield Pareto-efficient outcomes for a two-country world economy … when each country uses its domestic tax system to influence its terms of trade. In such circumstances, the implementation … of domestic tax systems which achieve a globally Pareto-efficient outcome as a Nash equilibrium will be very difficult …
Persistent link: https://www.econbiz.de/10001642935
Persistent link: https://www.econbiz.de/10014461179
This paper characterises the domestic tax systems which yield Pareto-efficient outcomes for a two-country world economy … when each country uses its domestic tax system to influence ist terms of trade. In such circumstances, the implementation … of domestic tax systems which achieve a globally Pareto-efficient outcome as a Nash equilibrium will be very difficult …
Persistent link: https://www.econbiz.de/10011408776
Economic interdependence of heterogeneous habit forming consumers is examined by using a two-country model. Due to endogenous interest rate adjustments, consumption-habit dynamics in one country are affected by the other country’s habits and preferences. To characterize the interactive...
Persistent link: https://www.econbiz.de/10002235039
Persistent link: https://www.econbiz.de/10002416056
This paper investigates the interplay of trade and terrorism externalities under free trade between a developed nation that exports a manufactured good to and imports a primary product from a developing nation. A terrorist organization targets both nations and reduces its attacks in response to...
Persistent link: https://www.econbiz.de/10011691593
In the 1970s, taxation of "windfall" profits from primary products and intervention in trade and production has tempted governments into expansionary fiscal policies while stifling the private sector and depressing growth. However, the experience of the recent coffee boom has so far been more...
Persistent link: https://www.econbiz.de/10010227582
Persistent link: https://www.econbiz.de/10003957998
Using vector autoregressions on U.S. time series relative to an aggregate of industrialized countries, this paper provides new evidence on the dynamic effects of government spending and technology shocks on the real exchange rate and the terms of trade. To achieve identification, we derive...
Persistent link: https://www.econbiz.de/10003750522
Persistent link: https://www.econbiz.de/10012437078