Arbeitspapier
Food subsidies in general equilibrium
The Atkinson-Stiglitz theorem on uniform consumption taxation breaks down if prices are endogenous. This paper investigates the implications for optimal food subsidies in China. To do so, we build a general equilibrium model where low-skilled workers have a comparative advantage in the production of food. Food subsidies raise the relative demand for low-skilled workers, which reduces the skill premium and indirectly redistributes income from high-skilled to low-skilled workers. We calibrate our model to match key moments from the Chinese economy, including sectoral production and spending patterns that we obtain from micro-level survey data. Our results suggest that general equilibrium effects rationalize food subsidies in the range 5%-12%.
- Sprache
-
Englisch
- Erschienen in
-
Series: Tinbergen Institute Discussion Paper ; No. TI 2021-069/VI
- Klassifikation
-
Wirtschaft
Incomes Policy; Price Policy
Taxation and Subsidies: Efficiency; Optimal Taxation
Agricultural Policy; Food Policy
- Thema
-
uniform consumption taxes
general equilibrium effects
food subsidies
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Hummel, Albert Jan
Ziesemer, Vinzenz
- Ereignis
-
Veröffentlichung
- (wer)
-
Tinbergen Institute
- (wo)
-
Amsterdam and Rotterdam
- (wann)
-
2021
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Hummel, Albert Jan
- Ziesemer, Vinzenz
- Tinbergen Institute
Entstanden
- 2021
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