This paper examines the role of relative prices in economic growth and the possibility that relative prices are (or can be) partly determined by tax policy. In the opening section, the paper links relative prices to tax policy. Using an extension to a standard model of economic growth, it...

This paper explores the dynamic effects of trade liberalization on tax revenue using a worldwide panel dataset. Results point to statistically significant negative effect of liberalization on (non- resource) tax revenues in the short term and no significant effect in the medium term....

No previous quasi-experimental paper has systematically examined the relationship between the extensive margin labor supply response to taxation and the employment level. We model the labor force participation margin and estimate participation responses for married women in Sweden using...

The paper examines the manner in which federal tax expenditure estimates are prepared by the Congressional Joint Committee on Taxation (JCT) and the Treasury Department’s Office of Tax Analysis (OTA). The paper finds that the current cash flow method does not measure the actual benefits of...

We apply non-linear error-correction models to the empirical testing of the sustainability of the government's intertemporal budget constraint. Our empirical analysis, based on Italy, shows that the Italian government is meeting its intertemporal budget constraint, in spite of the high levels of...

This study updates previous research estimating the persistent effect of tax changes on capital gains realizations by using a large panel of tax returns from 1999 to 2008. Similar to earlier studies in the literature, we use the type II Tobit model to address the sample selection problem and the...

This testimony makes three main points. First, income volatility, especially when it involves income declines, imposes significant hardships on American families. It heightens stress about finances and may increase household living expenses. These hardships are most pronounced for middle-and...

This paper investigates the response of major macroeconomic variables to four different types of tax policy innovations in Canada within a VAR framework. The positive tax multipliers documented in the previous literature are found only for corporate tax innovations. Our results imply that...

By employing comparative data, this paper addresses a central question: why is tax collection in Tajikistan lower than in other transitional countries? It presents a comparative analysis of the role of weak institutions and a shadow economy in determining the low level of tax effort measured by...