The Economic Effects of Financing a Large and Permanent Increase in Government Spending: Working Paper 2021-03

Jaeger Nelson () and Kerk Phillips

No 57021, Working Papers from Congressional Budget Office

Abstract: In this working paper, we analyze the long-term economic effects of financing a large and permanent increase in government expenditures of 5percent to10percent of gross domestic product (GDP) annually. This paper does not assess the economic effects of the increased government spending and focuses solely on the effects of their financing.The first part of the paper reviews the channels through which different financing mechanisms affect the economy. Specifically, the review focuses on how taxes on labor income, capital income, and consumption affect how

JEL-codes: E62 H20 H31 H62 (search for similar items in EconPapers)
Date: 2021-03-22
New Economics Papers: this item is included in nep-mac and nep-pub
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:cbo:wpaper:57021

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