A TALE OF TAX POLICIES IN OPEN ECONOMIES
构建并校准了一个小型开放经济模型，评估欧元区国家的财政改革，发现用资本所得税减税并提高劳动或消费税通常能带来福利改善。
To evaluate fiscal policy reforms for Euro‐area countries, this article develops and calibrates a small open economy model. Debt reduction reforms require higher tax rates in the short term in exchange for lower rates in the long term as the debt‐servicing burden falls. Using the capital income tax to implement such a policy leads to welfare gains; the consumption tax, a very small welfare gain; and the labor income tax, a welfare loss. Holding fixed the long‐run debt–output ratio, offsetting a lower capital income tax with either a higher labor income or consumption tax generally yields welfare gains.