Optimal Allocation of Social Cost for Electronic Payment System: A Ramsey Approach

• 발행기관: 서울대학교 경제연구소
• 저자명: Pidong Huang Young Sik Kim Manjong Lee
• 간행물 정보: 『Seoul Journal of Economics』Seoul Journal of Economics Volume 28 No.1, 31~52쪽, 전체 21쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2015.03.30

영문 초록

Using a standard Ramsey approach, we examine the optimal allocation of social cost for an electronic payment system in the context of a dynamic general equilibrium model. The benevolent govern-ment provides electronic payment services and allocates relevant social cost through taxation on the beneficiaries’ labor and consumption. A higher tax rate on labor yields the following desirable allocations. First, it implies a lower welfare loss because of the distortionary consumption taxation. It also enhances the economy of scale in the use of electronic payment technology, reducing per transaction cost of electronic payment. Finally, it saves the cost of withdrawing and carrying around cash by reducing the frequency of cash trades. All these channels together imply optimality of the unity tax rate on labor.

목차

Abstract

Ⅰ. Introduction

Ⅱ. Model

Ⅲ. Equilibrium

Ⅳ. Optimal Cost Allocation

Ⅴ. Concluding Remarks

References

키워드

Cash Electronic payment cost Ramsey problem