This paper studies regional output asymmetries following U.S. federal tax shocks. We estimate a vector autoregressive … model for each U.S. state, utilizing the exogenous tax shock series recently proposed by Romer and Romer (2010) and find … differences in the magnitude of regional tax multipliers suggests that industry composition of output and sociodemographic …

This paper develops a model with multiple steady states (low tax and unemployment rate versus high tax and unemployment … decrease it can only do so gradually because of matching frictions which in turn implies that the tax burden remains high and … transition to the low-unemployment regime is not possible when tax rates are adjusted each period to balance the budget even …

. These include higher risk premia, hedging costs and unforeseen redistribution of wealth. This paper presents panel …