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The Rise of Pass-Throughs and the Decline of the Labor Share

Smith, Matthew; Yagan, Danny; Zidar, Owen M.; Zwick, Eric - National Bureau of Economic Research - 2021

This paper studies the coevolution of the fall in the US corporate sector labor share and the rise of business activity in tax-preferred, pass-through form. Reallocating activity to the form it would have taken prior to the Tax Reform Act of 1986 accounts for one third of the decline in the...

Persistent link: https://www.econbiz.de/10012660078

A Temporary VAT Cut as Unconventional Fiscal Policy

Bachmann, Ruediger; Born, Benjamin; Goldfayn-Frank, Olga; … - National Bureau of Economic Research - 2021

We exploit the unexpected announcement of an immediate, temporary VAT cut in Germany in the second half of 2020 as a natural experiment to study the spending response to unconventional fiscal policy. We use survey and scanner data on households' consumption expenditures and their perceived...

Persistent link: https://www.econbiz.de/10012660119

The Augmented Synthetic Control Method

Ben-Michael, Eli; Feller, Avi; Rothstein, Jesse - National Bureau of Economic Research - 2021

The synthetic control method (SCM) is a popular approach for estimating the impact of a treatment on a single unit in panel data settings. The "synthetic control" is a weighted average of control units that balances the treated unit's pre-treatment outcomes and other covariates as closely as...

Persistent link: https://www.econbiz.de/10012585369

Procyclical Fiscal Policy and Asset Market Incompleteness

Fernández, Andrés; Guzman, Daniel; Lama, Ruy E.; … - National Bureau of Economic Research - 2021

To explain the fact that government spending and tax policy are procyclical in emerging and developing countries, we develop a model for the joint behavior of optimal tax rates and government spending over the business cycle. Our set-up relies on financial frictions, which have been shown to be...

Persistent link: https://www.econbiz.de/10012616597

A q Theory of Government Debt and Taxes

Jiang, Wei; Sargent, Thomas J.; Wang, Neng; Yang, Jinqiang - National Bureau of Economic Research - 2022

An optimal tax and government borrowing plan in a setting with tax distortions (Barro, 1979) locally pin down the marginal cost of servicing government debt, called marginal p. An option to default determines the government's debt capacity and its optimal state-contingent risk management...

Persistent link: https://www.econbiz.de/10013191026

Capital Investment and Labor Demand

Curtis, E. Mark; Garrett, Daniel G.; Ohrn, Eric C.; … - National Bureau of Economic Research - 2021

We study how tax policies that lower the cost of capital impact investment and labor demand. Difference-in-differences estimates using confidential US Census Data on manufacturing establishments show that tax policies increased both investment and employment, but did not lead to wage or...

Persistent link: https://www.econbiz.de/10012696394

International Evidence of Strengthening Taxes and Spending For Sustainable Development

Aizenman, Joshua; Jinjarak, Yothin; Hien Nguyen; Park, … - National Bureau of Economic Research - 2021

We trace the linkages between the episodes of fiscal expansion and consolidation in 72 advanced and emerging and developing economies. The findings suggest that fiscal expansions are positively associated with economic growth, which in turn is positively linked with better sustainable...

Persistent link: https://www.econbiz.de/10012794621

Tax Policy, Asset Prices, and Growth : A General Equilibrium Analysis

Goulder, Lawrence H. - 1987

This paper presents a multisector general equilibrium model that is capable of providing integrated assessments of the economy's short- and long- run responses to tax policy changes. The model contains an explicit treatment of firm's investment decisions according to which producers exhibit...

Persistent link: https://www.econbiz.de/10012476941

Regional Effects of Taxes in Canada : An Applied General Equilibrium Approach

Jones, Rich - 1986

regional effects of taxes. Earlier, literature on regional tax effects is reviewed and the main features of the model are … important regional features of taxes, such as taxes which are predominantly on products or industries located in particular … regions. Results suggest that regional effects of taxes can be significant, and in the Canadian case at least, do not tend to …

Persistent link: https://www.econbiz.de/10012476962

Real Estate and the Tax Reform Act of 1986

Hendershott, Patric H. - 1986

In contrast to the conventional wisdom, real estate activity in the aggregate is not disfavored by the 1986 Tax Act. Within the broad aggregate, however, widely different impacts are to be expected. Regular rental and commercial activity will be slightly disfavored, while historic and old...

Persistent link: https://www.econbiz.de/10012476971