Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Stafford says too early to say whether stock market declines will curtail Americans' spending

Eisenberg says many colleges now train campus personnel to spot and refer troubled college students

Farley on new strategies for city insolvencies in Michigan

Highlights

Call for papers: Conference on Integrating Genetics and the Social Sciences, Oct 21-22, 2016, CU-Boulder

PRB training program in policy communication for pre-docs. Application deadline, 2.28.2016

Call for proposals: PSID small grants for research on life course impacts on later life wellbeing

PSC News, fall 2015 now available

Next Brown Bag

Monday, Feb 1 at noon, 6050 ISR-Thompson
Sarah Miller

Phased-in tax cuts and economic activity

Publication Abstract

House, C.L., and Matthew D. Shapiro. 2006. "Phased-in tax cuts and economic activity." American Economic Review, 96(5): 1835-1849.

This paper uses a dynamic general equilibrium model to analyze and quantify the aggregate effects of the timing of tax rate changes enacted in 2001 (which called for successive rate reductions through 2006) and 2003 (which made immediate tax rate cuts scheduled for 2004 and 2006). The phased-in nature contributed to the slow recovery from the 2001 recession, while the elimination of the phase-in helped explain the increase in economic activity in 2003. The simulations suggest while the tax policy was a drag on the economy in 2001 and 2002, it increased economic growth in 2003, once phase-ins were eliminated.

DOI:10.1257/aer.96.5.1835 (Full Text)

Browse | Search : All Pubs | Next