Year: 2025
Type: article
Abstract: We evaluate the implications of different methodological choices for estimating the effect of tax policy on economic growth using cross-country panel data. We estimate the effect of personal, corporate, and value-added tax rate changes using alternative measures of policy shocks and employing estimation strategies both from the previous literature, and from newer methods that account for staggered treatments. Overall, we find imprecise estimates that do not credibly support claims that tax rate changes have a statistically robust medium-term impact on national income.
Authors: Laura Kawano, John S. Olson, Joel Slemrod, Meng Hsuan Hsieh
Institutions: University of Michigan, Northwestern University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,090
OpenAlex ID: W4412373517