Jump to content

Capital Share of Income in small open Economy


Shehryar90

Recommended Posts

Question:

We know that in the long run open economy, the real interest rate in the small open economy (SOE) is determined by the world real interest rate.

Given that:

What does this imply for the Capital Share of Income in the small open economy?

 

Can taxes be used in this scenario to redistribute income (in small open economy)?

I am looking for economic intuitive answers here.

 

Regards

 

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
×
×
  • Create New...

Important Information

This website uses cookies to ensure you get the best experience on our website. See our Privacy Policy and Terms of Use