Using a narrative identification of US tax changes over the post-WWII period, we show that corporate income tax cuts …, changes in the average personal income tax rate have mostly short-term effects. An estimated endogenous productivity model …

Using a narrative identification of tax changes in the United States over the post-WWII period, we document that a … temporary cut in corporate income tax rates leads to a long-lasting increase in innovation and productivity, whereas changes in … personal income tax rates only have short-term effects. We show that the results on corporate taxes are consistent with …