Autore
Rehme, Gunther

Titolo
Economic growth, (re-)distributive policies, capital mobility and tax competition in open economies
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1997 - Fascicolo: 24 - Pagina iniziale: 1 - Pagina finale: 53

This paper investigates the trade-off between growth and redistribution in open economies. In closed economies redistribution seems to reduce growth. I show that in open economies tax competition leads redistributing ('left-wing') governments to mimic 'right-wing' policies if capital mobility is very high. In the model 'right-wing' governments are strategically passive and just maximize GNP growth. For domestic left-wing governments it is shown that 'left-right competition leads to more redistribution and lower GDP growth than 'left-left' competition. Efficiency differences allow for higher GDP growth and redistribution than one's opponent. Irrespective of efficiency differences 'left-wing' governments are shown to have higher GDP growth rates when competing with other 'left-wing' governments.



Testo completo: http://hdl.handle.net/1814/633

Esportazione dati in Refworks (solo per utenti abilitati)