countries using pooled regressions. Fiscal effects are included via after-tax interest rates. Other factors shown to be relevant …

at the European Central Bank to examine the potential benefits and spillovers of reducing labour-market distortions … caused by euro area tax structures. Our analysis shows that lowering tax distortions to levels prevailing in the United … States would result in an increase in hours worked and output by more than 10 percent. At the same time, tax reductions would …

disagrees on even the qualitative response of key macroeconomic variables to government spending and tax shocks. We provide new … diverging results as regards the effects of tax shocks, with the estimated effects ranging from non-distortionary to strongly …