Molana, Hassan; Montagna, Catia; Kwan, Chang Yee - Department of Economics Studies, University of Dundee - 2010
subsidies and show that, for a small open economy, positive tax and subsidy rates exist which maximise welfare, rendering no … hence typically reduce welfare. In this paper we consider the use of ‘tax-and-subsidise’ instead of ‘tax-and-spend’ policies …