TY  - BOOK
AU  - Cloyne,James
AU  - Martinez,Joseba
AU  - Mumtaz,Haroon
AU  - Surico,Paolo
ED  - National Bureau of Economic Research.
TI  - Short-Term Tax Cuts, Long-Term Stimulus
T2  - NBER working paper series
PY  - 2022///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
KW  - Production
KW  - jelc
KW  - Fiscal Policy • Modern Monetary Theory
KW  - Personal Income and Other Nonbusiness Taxes and Subsidies
KW  - Business Taxes and Subsidies
KW  - Household
KW  - Firm
KW  - Management of Technological Innovation and R&D
N1  - July 2022; Hardcopy version available to institutional subscribers
N2  - We study the persistent effects of temporary changes in U.S. federal corporate and personal income tax rates using a narrative identification approach. A corporate income tax cut leads to a sustained increase in GDP and productivity, with peak effects between five and eight years. R&D spending and capital investment display hump-shaped responses while hours worked and employment are much less affected. In contrast, personal income tax cuts trigger a short-lived boost to GDP, productivity and hours worked but have no long-term effects. We develop and estimate an endogenous growth model with variable factor utilization and show that these features generate a pro-cyclical response of productivity which is key to account for our empirical findings
UR  - https://www.nber.org/papers/w30246
UR  - http://dx.doi.org/10.3386/w30246
ER  -