Recent debate on the effectiveness of tax rebates has concentrated on the degree to which they can affect economic activity, which depends on the methodology, the state of the economy, and the underlying assumptions. A better approach to assess the effectiveness of these monetary transfers is by...

Recent debate on the effectiveness of tax rebates has concentrated on the degree to which they can affect economic activity, which depends on the methodology, the state of the economy, and the underlying assumptions. A better approach to assess the effectiveness of these monetary transfers is by...

In the last couple of years we have observed a variety of tools used to stimulate the economy, from the tax rebates of 2008 to the monetary infusion to the financial institutions in 2009. At the same time loud questioning of the perceived favoritism for the financial system has emerged, with...