This paper analyzes the short-run effects of a consumption tax increase (VAT or national sale tax) on aggregate demand. Because it increases the prices paid by consumers relative to the prices received by suppliers, a consumption tax affects the supply of real money balances, in addition to...

In this paper we estimate presidential popularity functions for four regional subsets using a quadratic in inflation and unemployment. Popularity functions for the East, West, South, and Midwest are estimated by seemingly unrelated regressions using Gallup poll data for the Reagan...