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Winners and Losers of the COVID-19 Pandemic: An Excess Profits Tax Proposal

Author

Listed:
  • Céline Azémar
  • Rodolphe Desbordes
  • Paolo Melindi-Ghidi

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Jean-Philippe Nicolaï

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this paper, we study the gains and losses incurred during the COVID-19 pandemic. We distinguish between the effects of the pandemic and those of the health measures implemented to reduce the death toll, notably ‘the lockdown'. Our theoretical model is focused on within-sector firm heterogeneity and involves imperfect competition in a partial equilibrium setting. A comparison between the gains and losses triggered by both the pandemic and the lockdown indicates that an excess profits tax imposed on the ‘winners' could partly compensate the ‘losers' of the same sector.

Suggested Citation

  • Céline Azémar & Rodolphe Desbordes & Paolo Melindi-Ghidi & Jean-Philippe Nicolaï, 2022. "Winners and Losers of the COVID-19 Pandemic: An Excess Profits Tax Proposal," Working Papers hal-04159811, HAL.
    • Handle: RePEc:hal:wpaper:hal-04159811
    Note: View the original document on HAL open archive server: https://hal.science/hal-04159811
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    More about this item

    Keywords

    Excess profits; COVID-19; Lockdown; Imperfect competition; Transfers.;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts

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