EconPapers    
Economics at your fingertips  
 

Dynamic Scoring: A Back-of-the-Envelope Guide

N. Gregory Mankiw () and Matthew Weinzierl ()

No 11000, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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 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.

JEL-codes: E1 H3 H6 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-dge and nep-mac
Date: 2004-12
Note: EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Published as Mankiw, N. Gregory and Matthew Weinzierl. "Dynamic Scoring: A Back-of-the-Envelope Guide," Journal of Public Economics, 2006, v90(8-9,Sep), 1415-1433.

Downloads: (external link)
http://www.nber.org/papers/w11000.pdf (application/pdf)

Related works:
Journal Article: Dynamic scoring: A back-of-the-envelope guide (2006) Downloads
Working Paper: Dynamic Scoring: A Back-of-the-Envelope Guide (2005) 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:nbr:nberwo:11000

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w11000

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-10-18
Handle: RePEc:nbr:nberwo:11000