TY  - JOUR
AU  - Giovannini,Alberto
TI  - International Capital Mobility and Tax Evasion
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2460
PY  - 1987
Y2  - December 1987
UR  - http://www.nber.org/papers/w2460
L1  - http://www.nber.org/papers/w2460.pdf
N1  - Author contact info:
Alberto Giovannini
Unifortune Asset Management
Via Donizetti 53
20122 Milano, Italy
E-Mail: alberto.giovannini@alum.mit.edu
AB  - This paper studies the welfare effects of international investment to evade domestic taxes on domestic investment income. Capital mobility for tax evasion eliminates distortions in the intertemporal allocation of consumption, but introduces distortions in domestic production. Conversely, a regime where residents pay taxes on all investment income, domestic and foreign, introduces distortions in intertemporal consumption allocation, but leaves domestic production distortion-free. The relative magnitude of the interest elasticity of savings and the interest elasticity of domestic investment determines the welfare effects of capital movements for the purpose tax evasion.
ER  -