"For United States annual data that include World War II, the estimated multiplier for temporary defense spending is 0.4–0.5 contemporaneously and 0.6-0.7 over 2 years. If the change in defense spending is "permanent" (gauged by Ramey's defense-news variable), the multipliers are higher by...

We investigate the conditions under which tax revenues can enhance economic growth. Using a newly constructed dataset consisting of 135 economies and spanning the period 1990-2019, we study how changes in tax revenues impact economic growth using a panel vector autoregression (PVAR) model. Tax...