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While the EU recovery plan provides a useful step in alleviating the economic effects of the coronavirus crisis and achieving further European integration, a permanent fiscal stabilization capacity dealing with major crises is still missing. Such a EU-wide stabilization function would be in...
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uniform federal carbon tax that is endorsed by all states with equal per capita transfers can theoretically put a higher … burden on poorer states than richer states. The opposite applies for transfers based on historical emissions (sovereignty … transfers) which reduce the burden of emissionintensive states. We test our results numerically in a general equilibrium model …
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The European Union has set up a fund in order to compensate countries for damages resulting from Covid-19 that hit the economies in an asymmetric way. We argue that payments should be based only on relative damages, expressed as losses relative to GDP, and any distribution mechanism implying...
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