Ramsey-optimal tax reforms and real exchange rate dynamics

• 成果类型: Article
• 署名作者: Auray, Stephane; Eyquem, Aurelien; Gomme, Paul
• 署名单位: Ecole Nationale de la Statistique et de l'Analyse de l'Information (ENSAI); Universite du Littoral-Cote-d'Opale; Centre National de la Recherche Scientifique (CNRS); CNRS - Institute for Humanities & Social Sciences (INSHS); Universite Lyon 2; Institut Universitaire de France; Concordia University - Canada; Universite de Montreal
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2018.09.007
• 发表日期: 2018
• 页码: 159-169
• 关键词: Optimal fiscal policy; Tax reforms; welfare

摘要

We solve the Ramsey-optimal tax plan for a small open economy with an endogenously-determined real exchange rate. The open economy constrains the government's setting of the capital income tax rate since physical capital cannot be dominated in rate of return by foreign assets. However, the endogenous real exchange rate loosens this constraint relative to a one good open economy model in which the real exchange rate is necessarily fixed. We find that the dynamics of the two good small open economy model more closely resemble those of a closed economy model than a one good small open economy model. (C) 2018 Elsevier B.V. All rights reserved.