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.
- Guvenen, Mataloni Jr, Rassier, Ruhl: Offshore Profit Shifting and Domestic Productivity Measurement
- Prescott and Wessel: Money in the Production Function
- Song, Price, Guvenen, Bloom, von Wachter: Firming Up Inequality
- Karabarbounis and Neiman: Accounting for Factorless Income
- Kehoe, Pujolàs, Rossbach: Improving the Analysis of Trade Policy
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