Asymmetric tax multipliers

Paul M. Jones, Eric Olson () and Mark Wohar ()

Journal of Macroeconomics, 2015, vol. 43, issue C, 38-48

Abstract: Using recently published tax series by Romer and Romer (2010) and Cloyne (2013) we examine whether or not positive and negative tax shocks have asymmetric effects on the U.S. and U.K. economies. We find that in the U.S. positive tax shocks—tax increases—do not affect output while negative tax shocks—tax cuts—have large, positive effects. In the U.K., tax increases substantially reduce output while tax cuts have no significant effect.

Keywords: Tax multipliers; Nonlinear models (search for similar items in EconPapers)
JEL-codes: E30 E62 H50 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:43:y:2015:i:c:p:38-48

DOI: 10.1016/j.jmacro.2014.08.006

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