Can Direct and Indirect Taxes Be Added for International Comparisons of Competitiveness? / Hans-Werner Sinn.

Format:

Book

Author/Creator:

Sinn, Hans-Werner.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w3263.

NBER working paper series no. w3263

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1990.

Summary:

While it is usually argued that direct and indirect taxes should be added for meaningful international comparisons of country competitiveness, this paper argues that the opposite may be true. It is possible that a country with a high value-added tax needs a high capital income tax to maintain its international competitiveness and vice verca. Which view is correct depends on which combination of the origin, destination, source and residence principles' prevail and whether or not accelerated depreciation is allowed. Using a Heckscher-Ohlin model with international capital movements the paper studies the relevant alternatives in detail.

Notes:

Print version record

February 1990.