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Data and Code for: The Macroeconomic Effects of Income and Consumption Tax Changes
Principal Investigator(s): View help for Principal Investigator(s) Anh Dinh Minh Nguyen, Bank of Lithuania; Luisanna Onnis, University of Huddersfield; Raffaele Rossi, University of Manchester
Version: View help for Version V3
Name | File Type | Size | Last Modified |
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Replication-Codes-AEJPol-2017-0241 | 05/19/2020 03:37:PM |
Project Citation:
Project Description
Abstract: "This paper estimates the effects of exogenous changes in income and consumption taxes. The tax shocks are proxied with a narrative account of tax liability changes in the United Kingdom. Income tax cuts have large effects on GDP, private consumption and investment. The effects of consumption tax cuts are modest and not statistically significant on GDP and its components. Shifting the burden of taxation from income to consumption is expansionary. Consistent with conventional public finance theories, these results indicate that it is crucial to distinguish between direct and indirect taxation when studying the transmission mechanism of fiscal policy."
Scope of Project
E62 Fiscal Policy
H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
H25 Business Taxes and Subsidies including sales and value-added (VAT)
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Published Versions
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