The recent slowdown in the U.S. economy has led to state and local government tax increases and expenditure cuts that have lowered aggregate demand, in contrast to earlier downturns when the sector provided significant automatic stabilizers. Several explanations for this change are examined,...

This paper presents a shift-share decomposition analysis of new firm formation at the three-digit NAICS level in the United States from 1998 to 2003, attributing overall new firm creation, in construction, manufacturing, and service sectors respectively, to three distinct sources, i.e., business...

This paper studies the effectiveness of corporate tax incentives in reducing the effective tax rate (ETR) on income from capital to stimulate business investment during economic downturns. We focus on tax rate incentives (TRIs), such as corporate tax rate cuts, and tax base incentives (TBIs),...