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

• 발행기관: 고려대학교 미래성장연구원
• 저자명: Pidong Huang Young Sik Kim Manjong Lee
• 간행물 정보: 『미래성장연구소 Working Paper』2014 Working Paper, 1~23쪽, 전체 23쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2014.01.01

영문 초록

Using a standard Ramsey approach, we examine an optimal allocation of the social cost for electronic payment system in the context of a dynamic general equilibrium model where money is essential. The benevolent government provides electronic payment services and allocates the 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 due to the distortionary consumption taxation. It also enhances 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

1. Introduction

2. Model

3. Equilibrium

4. Optimal Allocation of Social Cost

5. Concluding Remarks

References

키워드

cash electronic payment social cost Ramsey problem