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Theoretical Economics
Article . 2023 . Peer-reviewed
License: CC BY NC
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zbMATH Open
Article . 2023
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SSRN Electronic Journal
Article . 2022 . Peer-reviewed
Data sources: Crossref
EconStor
Article . 2023
License: CC BY NC
Data sources: EconStor
EconStor
Research . 2022
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Generalized compensation principle

Authors: Schulz, Karl; Tsyvinski, Aleh; Werquin, Nicolas;

Generalized compensation principle

Abstract

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.

Keywords

Kaldor-Hicks, inequality, compensation principle, ddc:330, Incidence, distortionary taxation, distortionary taxes, Equity, Justice, Inequality, and Other Normative Criteria and Measurement, wage disruption, D61, Macroeconomic theory (monetary models, models of taxation), compensating variation, H31, General equilibrium theory, H21, Compensation principle, Welfare economics, D63, general equilibrium, General Welfare, Well-Being

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
8
Top 10%
Average
Top 10%
gold