Basic economic theory identifies a number of efficiency gains that derive from international capital mobility. But just as with free trade in goods, there is no guarantee that capital mobility makes everyone better o¤. Consequently, capital mobility may be politically unsustainable even though it enhances efficiency. This paper discusses how such a dilemma might arise, and suggests that international tax coordination might serve as a way out under some circumstances.
|Place of Publication||Tilburg|
|Number of pages||10|
|Publication status||Published - 1999|
|Name||CentER Discussion Paper|
- capital movements