Prof. SeungDuck Lee's article, selected to feature in Wiley’s Research Headlines
- ecos
- Hit2550
- 2022-05-26
Prof. SeungDuck Lee's article about 'CBDC', selected to feature in Wiley’s Research Headlines
Wiley, publishing summaries of the most newsworthy research from more than 1,600 journals nominated by WEAI(Western Economic Association International) has selected 'Central bank digital currency, tax evasion, and inflation tax' written by Prof. Seungduck Lee (Department of Economics) as Wilely's Research Headlines.
Wiley post the research summaries on the Wiley Newsroom, share on EurekAlert (a science newswire that provides exposure to more than 14,000 reporters from 90+ countries), and amplify on @WileyNews with more than 4,700 followers.
(https://newsroom.wiley.com/press-releases/press-release-details/2022/Can-introducing-a-central-bank-digital-currency-improve-social-welfare/default.aspx)
※ Abstract:
Can introducing a central bank digital currency (CBDC) improve social welfare? We construct a dual currency model to study whether CBDC with a record‐keeping technology can reduce tax evasion incentives in cash transactions and further achieve better allocations than a cash‐only economy with respect to fiscal arithmetic. We show that when there is inefficiency associated with tax evasion in cash transactions, introducing CBDC with strictly positive interest can remove the inefficiency and thus improve welfare by discouraging tax evasion and rewarding tax payments. This beneficial effect of the CBDC depends on the central bank's fiscal role.
Full paper: https://onlinelibrary.wiley.com/journal/14657295