Abstract | Keywords | Export | Availability | Bookmark

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

We estimate tax multipliers in a "Blanchard-Yaari" consumption model where Ricardian equivalence is broken because the private sector discounts the future at a faster rate than the real rate of interest. The model fits U.S. data since 1955 extremely well-entailing a discount wedge of around 20 percent a year and fiscal multipliers of 0.15-0.4-depending on the permanence of the change in taxes/transfers, and is much superior to one that assumes some consumers are fully Ricardian and others follow simple rules of thumb. The implied high private sector rate of discount has wide implications for policymakers.

Electronic books. -- local. --- Fiscal policy. --- Multiplier (Economics). --- Business & Economics --- Economic Theory --- Multiplier (Economics) --- Economic multiplier --- Tax policy --- Taxation --- Government policy --- Economics --- Income --- National income --- Circular velocity of money --- Economic policy --- Finance, Public --- Econometrics --- Macroeconomics --- Personal Income, Wealth, and Their Distributions --- Aggregate Factor Income Distribution --- Macroeconomics: Consumption --- Saving --- Wealth --- Estimation --- Econometrics & economic statistics --- Personal income --- Consumption --- Disposable income --- Estimation techniques --- Econometric models --- United States