Fotiou, Alexandra; Shen, Wenyi; Yang, Shu-Chun S. - 2020
that the output effect of capital income tax cuts is government debt-dependent: it is less expansionary when debt is high … model with regime-switching fiscal policy and finds that a capital income tax cut is stimulative to the extent that it is … future fiscal adjustments starts rising, and the expansionary effects of a capital income tax cut can diminish substantially …