OxTalks will soon move to the new Halo platform and will become 'Oxford Events.' There will be a need for an OxTalks freeze. This was previously planned for Friday 14th November – a new date will be shared as soon as it is available (full details will be available on the Staff Gateway).
In the meantime, the OxTalks site will remain active and events will continue to be published.
If staff have any questions about the Oxford Events launch, please contact halo@digital.ox.ac.uk
We study the persistent effects of transitory changes to U.S. personal and corporate income taxes using a narrative identification of their associated federal tax liability changes. In the short-run, only personal income taxes have a large impact on productivity and output whereas in the long-run, only corporate income taxes lead to a significant response of productivity and output. We develop and estimate a structural model with endogenous growth, variable factor utilization and distortionary taxation, and show that labour effort is crucial to explain the short-run impact of personal income taxes. In contrast, business innovation is key to account for the long-run effects of corporate income taxes. The reason is that variable factor utilization and R&D spending make productivity pro-cyclical in the short-run and in the long-run respectively and, through that, shape the dynamic effects of personal and corporate tax changes on the economy.
