NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Can Direct and Indirect Taxes Be Added for International Comparisons of Competitiveness?

Hans-Werner Sinn

NBER Working Paper No. 3263 (Also Reprint No. r1541)
Issued in February 1990
NBER Program(s):   PE

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.

download in pdf format
   (259 K)

download in djvu format
   (181 K)

email paper

This paper is available as PDF (259 K) or DjVu (181 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w3263

Published: Reforming Capital Income Taxation, edited by Horst Siebert, Tubingen, Germany: J.C.B. Mohr (Paul Siebeck), 1990, pp. 47-65.

Users who downloaded this paper also downloaded these:
Saez w8833 Direct or Indirect Tax Instruments for Redistribution: Short-run versus Long-run
Li and Whalley w17919 Indirect Tax Initiatives and Global Rebalancing
Summers w2007 Tax Policy and International Competitiveness
Summers Tax Policy and International Competitiveness
Kravis and Lipsey SOME FURTHER ASPECTS OF INTERNATIONAL COMPETITIVENESS
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us