Optimal Cooperative Taxation in the Global Economy
研究了在政府支出依赖扭曲性税收时，各国如何合作制定财政和贸易政策，发现即使没有直接转移支付，帕累托边界上的每一点都实现生产有效，因此国际贸易和资本流动应完全自由，并提出了具体的税收制度建议。
How should countries cooperate in setting fiscal and trade policies when government expenditures must be financed with distorting taxes? We show that even if countries cannot make explicit transfers to each other, every point on the Pareto frontier is production efficient, so that international trade and capital flows should be effectively free. Trade agreements must be supplemented with fiscal policy agreements. Residence-based income tax systems have advantages over source-based systems. Taxing all household asset income at a country-specific uniform rate and setting the corporate income tax to zero yield efficient outcomes. Value-added taxes should be adjusted at the border.