On July 18, 2023 Brigitte Hochmuth (University of Vienna) will talk about “The Dark Shadow of Benefit Reforms in the Open Economy” (joint work with Christian Merkl and Heiko Stüber).
In this paper, the authors estimate the dynamic marginal efficiency cost of redistribution (MECR) associated with a large-scale program of this kind in Germany, and compare them with the MECR associated with the benchmark redistributive tool, the income tax.