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| Author: | Mankiw, N. G. Weinzierl, M. |
| Title: | Dynamic scoring: a back-of-the-envelope guide |
| Journal: | Journal of Public Economics
2006 : SEP, VOL. 90:8-9, p. 1415-1433 |
| Index terms: | estimation growth revenue taxation |
| Language: | eng |
| Abstract: | This paper explores the extent to which a tax cut pays for itself through higher economic growth. The paper uses the neoclassical growth model, which yields simple expression for the steady-state feedback effect of a tax cut. This article considers various generalization of the basic model, including elastic labor supply, general production technologies, departures from infinite horizons, and non-neoclassical production settings. The paper also explores how the steady-state results are modified when one considers the transition path to steady state. |
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