Uncertainty about an economy’s regime can change drastically around a crisis. An imported crisis such as the global financial in euro area highlights effect of foreign shocks. Estimating open-economy nonlinear dynamic stochastic general equilibrium model for and United States including Markov-switching volatility shocks, we show that these shocks were significant during compared with periods ca...

The paper surveys some main results in the theory of capital income taxation in the open economy; reviews recent trends in international taxation, and discusses alternative blueprints for fundamental capital income tax reform from the perspective of an open economy faced with growing mobility of capital