NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Capital Controls, Collection Costs, and Domestic Public Debt

Joshua Aizenman, Pablo E. Guidotti

NBER Working Paper No. 3443
Issued in September 1990
NBER Program(s):   ITI   IFM

The implications of a large public debt for the implementation of capital controls for an economy where tax revenue collection is costly are examined. Conditions are analyzed under which policymakers will resort to capital controls to reduce the cost of recycling domestic public debt. The linkages between a costly tax collection mechanism, capital controls, am domestic government debt are explored in terms of a two-period m:x1el of optimal taxation. Numerical simulations are provided to illustrate haw capital controls are linked to different domestic public debt levels am to different degrees of efficiency in tax-revenue collection.

download in pdf format
   (270 K)

download in djvu format
   (150 K)

email paper

This paper is available as PDF (270 K) or DjVu (150 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w3443

Published: Journal of International Money and Finance, Vol. 13, no. 1, pp. 41-54, (February 1994).

Users who downloaded this paper also downloaded these:
Reinhart and Rogoff w13946 The Forgotten History of Domestic Debt
Drazen w5890 Towards a Political-Economic Theory of Domestic Debt
Aizenman and Marion w15562 Using Inflation to Erode the U.S. Public Debt
Woodford w5684 Control of the Public Debt: A Requirement for Price Stability?
Aizenman w1583 On the Complementarity of Commercial Policy, Capital Controls and Inflation Tax
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

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

Contact Us