Generalized compensation principle

• 成果类型: Article
• 署名作者: Schulz, Karl; Tsyvinski, Aleh; Werquin, Nicolas
• 署名单位: University of St Gallen; Yale University; Federal Reserve System - USA; Federal Reserve Bank - Chicago
• 刊物名称: THEORETICAL ECONOMICS
• ISSN/ISSBN: 1933-6837
• DOI: 10.3982/TE3971
• 发表日期: 2023-11-01
• 页码: 1665-1710
• 关键词: Compensation principle; distortionary taxation; general equilibrium; wage disruption; D61; D63; H21; H31

摘要

Economic disruptions generally create winners and losers. The compensation problem consists of designing a reform of the existing income tax system that offsets the welfare losses of the latter by redistributing the gains of the former. We derive a formula for the compensating tax reform and its impact on the government budget when only distortionary tax instruments are available and wages are determined endogenously in general equilibrium. We apply this result to the compensation of robotization in the United States.