Capital taxation during the U.S. Great Depression

Ellen McGrattan

No 451, Staff Report from Federal Reserve Bank of Minneapolis

Abstract: Previous studies of the U.S. Great Depression find that increased taxation contributed little to either the dramatic downturn or the slow recovery. These studies include only one type of capital taxation: a business profits tax. The contribution is much greater when the analysis includes other types of capital taxes. A general equilibrium model extended to include taxes on dividends, property, capital stock, and excess and undistributed profits predicts patterns of output, investment, and hours worked more like those in the 1930s than found in earlier studies. The greatest effects come from the increased tax on corporate dividends.

Date: 2010
New Economics Papers: this item is included in nep-acc, nep-dge, nep-his, nep-mac, nep-pbe and nep-pub
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Citations: View citations in EconPapers (2)

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http://www.minneapolisfed.org/research/sr/sr451.pdf

Related works:
Journal Article: Capital Taxation During the U.S. Great Depression (2012)
Working Paper: Capital taxation during the U.S. Great Depression (2010)
Working Paper: Capital Taxation During the U.S. Great Depression (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmsr:451

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