The paper studies the implications of increased capital market integration and the associated increased tax competition … for world welfare. We consider a population with heterogenous endownments of capital in a model of redistributive politics …. We show that if countries have the same average capital endowments but differ with respect to the endowments of their …

This paper presents a simple two-country model with mobile capital and immobile labour, in which there are two classes … of individuals, the workers and the capital owners. A source-based tax on capital income is used to finance transfers to …), capital income is shown to be undertaxed at the non-cooperative equilibrium relative to the autarkic situation. …