Hayo, Bernd; Mierzwa, Sascha - 2022
We study the announcement effect of legislated tax changes on GDP in the US, Germany, and the UK. Using, as the shock … Germany. When allowing the responses to vary over the business cycle, we find evidence that US GDP drops regardless of the … rises (drops) during recessionary (non-recessionary) times. In general, consumption, investment, and employment follow in …