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Fiscal Policy Interdependence and Efficiency

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  • Willem H. Buiter
  • Kenneth M. Kletzer

Abstract

international transmission of fiscal policy among open interdependent economies under free international capital mobility. With only lump-sum taxes and transfers, international transmission involves only pecuniary externalities: barring dynamic inefficiency, only distributional issues (intergenerational and international) are involved. With age-specific taxes and transfers, the ability to run deficits and issue debt does not enhance the choice set of the governments. Source-based taxes on the rentals from capital and residence-based taxes on all property income are also studied.

Suggested Citation

  • Willem H. Buiter & Kenneth M. Kletzer, 1990. "Fiscal Policy Interdependence and Efficiency," NBER Working Papers 3328, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:3328
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    References listed on IDEAS

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    1. Buiter, Willem H, 1981. "Time Preference and International Lending and Borrowing in an Overlapping-Generations Model," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 769-797, August.
    2. Andrew B. Abel & N. Gregory Mankiw & Lawrence H. Summers & Richard J. Zeckhauser, 1989. "Assessing Dynamic Efficiency: Theory and Evidence," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(1), pages 1-19.
    3. Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62(2), pages 143-143.
    4. Obstfeld, Maurice, 1989. "Fiscal deficits and relative prices in a growing world economy," Journal of Monetary Economics, Elsevier, vol. 23(3), pages 461-484, May.
    5. Frenkel, Jacob A & Razin, Assaf, 1987. "Fiscal Policies and the World Economy; An Intertemporal Approach (Cambridge, Mass.: MIT Press, 1987)," MPRA Paper 20438, University Library of Munich, Germany.
    6. Willem H. Buiter & Jonathan Eaton, 1983. "International Balance of Payments Financing and Adjustment," NBER Working Papers 1120, National Bureau of Economic Research, Inc.
    7. Anne C. Sibert, 1988. "Taxing capital in an open economy," Research Working Paper 88-11, Federal Reserve Bank of Kansas City.
    8. anonymous, 1987. "External debt issues," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 50, june.
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    1. Willem H. Buiter & Kenneth M. Kletzer, 1995. "Capital Mobility, Fiscal Policy, and Growth under Self-Financing of Human Capital Formation," Canadian Journal of Economics, Canadian Economics Association, vol. 28(s1), pages 163-194, November.
    2. Philippe Thalmann & Lawrence Goulder & François Delorme, 1996. "Assessing the international spillover effects of capital income taxation," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 3(4), pages 449-478, October.
    3. Buiter, Willem H. & Kletzer, Kenneth M., 1991. "The welfare economics of cooperative and noncooperative fiscal policy," Journal of Economic Dynamics and Control, Elsevier, vol. 15(1), pages 215-244.
    4. Jean Cordier & Pierre Jaillet & Dominique Plihon, 1993. "La conduite des politiques économiques et le policy-mix dans l'UEM," Économie et Statistique, Programme National Persée, vol. 262(1), pages 37-48.

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