Schulz, Karl; Tsyvinski, Aleh; Werquin, Nicolas - In: Theoretical economics : TE ; an open access journal in … 18 (2023) 4, pp. 1665-1710
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...
