We construct a computational dynamic stochastic and explore the impact of policy stickiness on optimal long-run fiscal policy.

We construct a computational dynamic stochasticand explore the impact of policy stickiness on optimal long-run fiscal policy.

The Tax Cut and Jobs Act of 2017 (TCJA) made significant changes to corporate and personal federal income taxation, including limiting the SALT (state and local property, income and sales taxes) deductibility to $10,000. States with high SALT tend to vote Democratic. This paper estimates the...

Policymakers are often hard-pressed to understand what economists have to say on policy issues, and scholars and students need to know what the latest research findings are and what questions remain unanswered. Fiscal Policy: Lessons from Economic Research presents the work of leading...

A study of the magnitudes of tax increases, transfer cuts, or reductions in government purchases that would be needed to rectify the huge imbalance in the generational stance of U.S. fiscal policy, concluding that congressionally proposed outlay reductions in nondefense and non-Social Security...

An application of generational accounting to fiscal policies that feature intergenerational redistribution. The authors consider different policies, only some of which show up as a change in the deficit, and explore their impact on the net national saving rate.