Tsyvinski, Aleh - Search Results - UAB Digital Repository of Documents

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Generalized compensation principle / Tsyvinski, Aleh ; Werquin, Nicolas
We generalize the classic concept of compensating variation and the welfare compensation principle to a general equilibrium environment with distortionary taxes. We derive in closed-form the solution to the problem of designing a tax reform that compensates the welfare gains and losses induced by an arbitrary economic disruption. [...]
The ADEMU Working Paper Series is being supported by the European Commission Horizon 2020 European Union funding for Research & Innovation, grant agreement No 649396.
2018 (ADEMU Working Paper Series ; 137)

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