Capital Mobility and Taxation: State–Business Collusion in China

Savings, investment, and capital mobility within China☆

Article history: Received 26 February 2009 Received in revised form 6 August 2009 Accepted 26 August 2009 This paper addresses the capital mobility among regions within China. Using a range of panel estimators which deals with the non-stationarity of time series components, individual heterogeneity and common unobserved factors, we show that the savings and investment (both expressed as ratios ...

Regional capital mobility in China: 1978–2006

We examine cross-region capital mobility in China and track how the degree of mobility has changed over time. The effects of fiscal and redistributive activities of different levels of government in China on private capital mobility are taken into account. Our results indicate that there is a significant improvement in capital mobility over time in China, particularly for private capital in the...

Optimal time–consistent taxation with international mobility of capital

The United States relies for its government revenues more on the taxation of capital relative to the taxation of labor than countries in continental Europe do. In this paper we ask what can account for this. Our approach is to look at Markov perfect equilibria of a two– country growth model where both governments use labor, capital and corporate taxes to finance exogenously given streams of pub...

Taxation and Capital Spending

Mobility, taxation and welfare

Income mobility is often thought to equalize permanent incomes and thereby to improve social welfare. The welfare analysis of mobility often fails, however, to account for the cost of the variability of periodic incomes around permanent incomes. This paper assesses the net welfare benefit of mobility by assuming both a social aversion to inequality in permanent incomes and an individual aversio...