학술저널
Dividend and Monetary Policy and the Differential Tax Treatment of Capital Gains in a Two-Country World
Dividend and Monetary Policy and the Differential Tax Treatment of Capital Gains in a Two-Country World
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제9권 제4호
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1994.12502 - 524 (23 pages)
- 2
This paper adopts a representative-agent infinite-horizon two-country two-good framework and shows how the interdependence of monetary, fiscal, and dividend policy affects the cost of capital in a world of integrated capital markets under flexible exchange rates. The main implications are: (i) nominal variations in capital gains assign a role for the differentiation of capital gains taxes depending on the type of asset held; (ii) whereas the capital gains tax is assumed to be residence-based, the inflation tax is shown to be inherently a source-based tax.
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