TY  - JOUR
AU  - Aizenman,Joshua
AU  - Guidotti,Pablo E.
TI  - Capital Controls, Collection Costs, and Domestic Public Debt
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3443
PY  - 1990
Y2  - September 1990
UR  - http://www.nber.org/papers/w3443
L1  - http://www.nber.org/papers/w3443.pdf
N1  - Author contact info:
Joshua Aizenman
Economics and SIR
USC
University Park
Los Angeles, CA 90089-0043
Tel: 213-740-4066
E-Mail: aizenman@usc.edu
AB  - 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.
ER  -