EconPapers    
Economics at your fingertips  
 

Revisiting the Narrative Approach of Estimating Tax Multipliers

Shafik Hebous () and Tom Zimmermann

Scandinavian Journal of Economics, 2018, vol. 120, issue 2, 428-439

Abstract: We analyze whether popular measures of narrative tax shocks can be treated as relevant instruments for observable endogenous tax series of interest. We find that narrative tax measures are only weakly correlated with cyclically adjusted tax revenues for the US and the UK. Using weak‐instrument robust inference, narrative tax measures often yield insignificant estimates of tax multipliers. We conclude that the literature currently understates the uncertainty associated with estimating the tax multiplier using the narrative approach.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/sjoe.12232

Related works:
Working Paper: Revisiting the narrative approach of estimating tax multipliers (2015) Downloads
Working Paper: Revisiting the Narrative Approach of Estimating Tax Multipliers (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:120:y:2018:i:2:p:428-439

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0347-0520

Access Statistics for this article

Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten

More articles in Scandinavian Journal of Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2022-09-27
Handle: RePEc:bla:scandj:v:120:y:2018:i:2:p:428-439