Working Paper
Ramsey Taxation in the Global Economy
Chari, V. V.; Teles, Pedro; Nicolini, Juan Pablo (2017-12-11)
We study cooperative optimal Ramsey equilibria in the open economy addressing classic policy questions: Should restrictions be placed to free trade and capital mobility? Should capital income be taxed? Should goods be taxed based on origin or destination? What are desirable border adjustments? How can a Ramsey allocation be implemented with residence-based taxes on assets? We characterize optimal wedges and analyze alternative policy implementations.
Working Papers , Paper 745

Report
Optimal Cooperative Taxation in the Global Economy
Chari, V. V.; Teles, Pedro; Nicolini, Juan Pablo (2019-04-18)
We use the Ramsey and Mirrlees approaches to study how fiscal and trade policy should be set cooperatively when governments must raise revenues with distorting taxes. Free trade and unrestricted capital mobility are optimal. Efficient outcomes can be implemented with taxes only on final consumption goods and labor income. We study alternative tax systems, showing that uniform taxation of household asset returns, and not taxing corporate income yields efficient outcomes. Border adjustments exempting exports from and including imports in the tax base are desirable. Destination and residence ...
Staff Report , Paper 581

Report
Appendix for: Optimal Cooperative Taxation in the Global Economy
Chari, V. V.; Nicolini, Juan Pablo; Teles, Pedro (2022-03-07)
This appendix accompanies Staff Report 581: Optimal Cooperative Taxation in the Global Economy.
Staff Report , Paper 637