Understanding the "Problem of Economic Development": The Role of Factor Mobility and International Taxation / Assaf Razin, Chi-Wa Yuen.

Format:

Book

Author/Creator:

Razin, Assaf.

Contributor:

National Bureau of Economic Research.

Yuen, Chi-Wa.

Series:

Working Paper Series (National Bureau of Economic Research) no. w7115.

NBER working paper series no. w7115

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Understanding the "Problem of Economic Development"

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1999.

Summary:

The problem of economic development,' as Lucas (1988) states it, is the problem of accounting for the observed diversity in levels and rates of growth of per capita income across countries and across time. We study conditions under which capital mobility and labor mobility (two seemingly income-equalizing forces) may interact with cross-country differences in income tax rates and income tax principles (two seemingly income-diverging forces) to generate such diversity. As a corollary, we also examine when countries with different initial endowments may finally converge in their income levels.

Notes:

Print version record

May 1999.