Preannounced Tax Cuts and Their Potential Influence on the 2001 Recession
16 Pages Posted: 15 Oct 2009
Date Written: October 15, 2009
The authors present a model in which anticipated future tax cuts, like those promised during the 2000 U.S. presidential campaign, generate a contraction in economic activity with some of the atypical features observed during the 2001 recession (such as its relatively strong consumption and home investment).
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