Ramsey Taxation In The Global Economy
Speaker(s) Prof. V. V. Chari, University of Minnesota and Federal Reserve Bank of Minneapolis Publication Auditorium, 25th floor, Central Office Building, Reserve Bank of India, Fort, Shahid Bhagat Singh Road, Mumbai 400001
ABSTRACT

We study cooperative optimal Ramsey equilibria in the open economy addressing classic policy questions: Should restrictions be placed to free trade and capital mobility? Should capital income be taxed? Should goods be taxed based on origin or destination? What are desirable border adjustments? How can a Ramsey allocation be implemented with residence-based taxes on assets? We characterize optimal wedges and analyze alternative policy implementations. Keywords: Capital income tax; free trade; value-added taxes; border adjustment; origin- and destination-based taxation; production efficiency


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