OxTalks is Changing
During Michaelmas Term, OxTalks will be moving to a new platform (full details are available on the Staff Gateway).
For now, continue using the current page and event submission process (freeze period dates to be advised).
If you have any questions, please contact halo@digital.ox.ac.uk
The Persistent Effects of Transitory Tax Changes
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.
Date:
17 May 2022, 13:15
Venue:
Manor Road Building, Manor Road OX1 3UQ
Venue Details:
Seminar Room A or https://zoom.us/j/93987778529
Speaker:
Joseba Martinez (London Business School)
Organising department:
Department of Economics
Part of:
Macroeconomics Seminar
Booking required?:
Not required
Audience:
Members of the University only
Editor:
Emma Heritage
