Lejour, Arjan; Verbon, Harrie - In: International Tax and Public Finance 4 (1997) 4, pp. 485-497
This paper examines the effects of policy coordinationin a two-country world with endogenous growth and imperfect capitalmobility. Redistribution is financed by a source-based capital-incometax. Comparing the cases in which countries do and do not coordinatetheir fiscal policies, it is shown...