We analyze the case where governments have to use income tax revenue to finance public pollution abatement and relate the results to the existing literature on capital tax competition. We show that the impact of public pollution abatement on Nash taxes on mobile factor income is non-trivial and...

In this paper we incorporate tradable permits in a model of strategic environmental policy as an alternative policy scheme. In particular, we develop an international oligopoly model, where governments issue non-cooperatively a number of permits and then allow their trading by their polluting...

This paper builds a small open economy trade model where there is pollution from the production and consumption of goods. In the presence of production and consumption pollution, we examine a piecemeal consumer-price-neutral reform of the tariff and consumption tax and a piecemeal...

We build a model of cross-border pollution between two large open economies, one importing the polluting good and the other exporting it, and derive their non-cooperative trade and environmental tax policies. We show among other things, that (1) in response to a bilateral reduction in trade...

Open economy macroeconomic models generally overlook the effects of international migration and remittances on income and welfare. A two‐country temporary equilibrium model is presented which incorporates trade theoretic elements of international migration and remittances. In the model, an...

This paper examines the potential interaction between international labor migration, exogenous changes or policy reforms, and pre-existing distortions, such as generalized excess supply due to price-wage rigidities. Within this Keynesian income-expenditure context, it is suggested that (i) when...

We develop a small open-economy trade model where either a tariff, or a quota, or a voluntary export restraint (VER) exists, and where one exported, one imported, one non-traded, and one public good are produced. Within this context we examine the effects of fiscal expansion on welfare and the...