The authors examine a two-country general-equilibrium model of a two-country trading block where governments through tax policies attract mobile capital and provide an imported public consumption good. Within this framework the authors examine, among other things, how preferences over the public...

This paper examines the optimal capital tax policy under quantitative import constraints, and international capital tax credits. for a small capital-importing country, the optimal capital tax equals the foreign tax under a quota, and equals or exceeds the foreign tax under a VER. For a small...

We consider the implications of cooperation with respect to immigration control between a final-destination country (D) and its poorer neighbor (T). Assuming that the latter serves as a transit country for undocumented immigrants, a key question is how much aid should D provide to T for the...