The Dynamic Effects of Personal and Corporate Income Tax Changes in the United States: Reply to Jentsch and Lunsford

18 Pages Posted: 15 Jun 2018 Last revised: 29 Apr 2020

See all articles by Karel Mertens

Karel Mertens

Federal Reserve Banks - Federal Reserve Bank of Dallas

Morten O. Ravn

University College London

Date Written: 2018-05-01

Abstract

In this reply to a comment by Jentsch and Lunsford, we show that, when focusing on the relevant impulse responses, the evidence for economic and statistically significant macroeconomic effects of tax changes in Mertens and Ravn (2013) remains present for a range of asymptotically valid inference methods.

Keywords: Fiscal Policy, structural vector autoregressions, tax shocks

JEL Classification: C32, E62, H24, H25, H31, H32

Suggested Citation

Mertens, Karel and Ravn, Morten O., The Dynamic Effects of Personal and Corporate Income Tax Changes in the United States: Reply to Jentsch and Lunsford (2018-05-01). FRB of Dallas Working Paper No. 1805, Available at SSRN: https://ssrn.com/abstract=3196448 or http://dx.doi.org/10.24149/wp1805r1

Karel Mertens (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Dallas ( email )

2200 North Pearl Street
PO Box 655906
Dallas, TX 75265-5906
United States

Morten O. Ravn

University College London ( email )

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