@techreport{NBERw3298,
 title = "Investment Tax Credit in an Open Economy",
 author = "Partha Sen and Stephen J. Turnovsky",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "3298",
 year = "1991",
 month = "February",
 URL = "http://www.nber.org/papers/w3298",
 abstract = {This paper contrasts the effects of a permanent and temporary investment tax credit in an open economy. In both cases an ITC will initially stimulate investment, while reducing employment and output, and generating a current account deficit. If the ITC is permanent, the accumulation of capital leads to a higher equilibrium capital stock, higher employment and output, and a reduction in the economy's stock of net credit. If the ITC is temporary, after its removal, the economy eventually moves to a new steady-state equilibrium having a lower permanent  capital stock and employment, together with a higher stock of net credit.},
}