Razin, Assaf; Sadka, Efraim - National Bureau of Economic Research (NBER) - 1989
In a world economy there are two types of distortions which can be caused by capital income taxation in addition to the … inefficient allocation of world savings across countries; and (ii) international differences in the marginal productivity of … capital, implying an inefficient allocation of world investment across countries. The paper focuses on the structure of …