Dynamic scoring: A back-of-the-envelope guide

• 成果类型: Article
• 署名作者: Mankiw, N. Gregory; Weinzierl, Matthew
• 署名单位: Harvard University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2005.11.006
• 发表日期: 2006
• 页码: 1415-1433
• 关键词: taxation; GROWTH; revenue estimation

摘要

This paper uses the neoclassical growth model to examine the extent to which a tax cut pays for itself through higher economic growth. The model yields simple expressions for the steady-state feedback effect of a tax cut. The feedback is surprisingly large: for standard parameter values, half of a capital tax cut is self-financing. The paper considers various generalizations of the basic model, including elastic labor supply, general production technologies, departures from infinite horizons, and non-neoclassical production settings. It also examines how the steady-state results are modified when one considers the transition path to the steady state. (c) 2006 Elsevier B.V. All rights reserved.