Karl Schulz
Title
Dr.
Last Name
Schulz
First name
Karl
Email
karl.schulz@unisg.ch
2 results
Now showing 1 - 2 of 2
- Some of the metrics are blocked by yourconsent settings
Item type:Publication, Nonlinear taxation and international mobility in general equilibriumMigration and general equilibrium forces are both known to limit the extent of redistribution due to a migration threat and a trickle-down rationale, respectively. In this paper, we consider these two forces jointly and study the optimal nonlinear taxation of internationally mobile workers in general equilibrium. We show that both forces partly offset each other. In general equilibrium, migration may lower the bottom tax rate but raises the top tax rate, challenging the classical migration-threat argument. Moreover, we demonstrate that migration responses weaken the trickle-down rationale. Both findings can be explained by a novel wage effect on migration and a migration effect on wages, calling for higher top tax rates to amplify pre-tax wage inequality and prevent high-skilled emigration. We calibrate our model to the U.S. economy and illustrate the new effects by comparing the optimal tax schemes with and without migration, as well as with and without endogeneity of wages.Type:journal articleJournal:Journal of Public EconomicsVolume:218Scopus© Citations 2 - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Generalized compensation principleEconomic 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.Type:journal articleJournal:Theoretical EconomicsVolume:18Issue:4DOI:10.3982/te3971