Kessler, Anke S.; Lülfesmann, Christoph; Myers, Gordon M. - In: Review of Economic Studies 69 (2002) 4, pp. 899-923
The paper examines the consequences of the economic integration of factor markets in a model with two countries that redistribute income among their residents. The social benefits in each country are financed by a source based tax on capital which is democratically chosen by its inhabitants. If...