This paper examines the effect of the 1993 Earned Income Tax Credit expansion on the labor force participation of single women by comparing the changes from before to after the expansion in the participation of women with no, one, and two or more children. Both quasi-experimental and...

Does the public believe that fiscal and monetary stimulus reduce unemployment? I present survey evidence on this question from a random sample of Pennsylvania residents. Few respondents express a consistently Keynesian view of fiscal or monetary stimulus. In fact, the typical respondent believes...

In this paper, we propose two alternative formulations of representative consumer¡¯s endogenous time preference that depends on consumption as well as wealth and/or revenue. We solve one of these formulations and apply it to study the effectiveness of fiscal policies in a small open economy...

Since the early 20th century, the Federal Government has chosen a self-imposed statutory limit on federal debt which has been increased, and occasionally reduced, in sporadic intervals. This paper uses a regression model to examine the time interval between changes in the statutory debt limit...

We construct an overlapping-generations experiment to test for two alleged departures from Ricardian equivalence. In the first treatment the setting is close to the theoretical model, while in the second we allow for liquidity-constrained consumers. We then introduce uncertainty on future income...

In this note we model the individual decision on income underreporting in a system with a negative income tax. We show that a change in the tax rate has opposing effects on the compliance behavior of the poor and the rich.

This paper attempts to provide a framework to explain both the lower share of current spending in large fiscal adjustments and the potential expansionary effects of fiscal contractions. We distinguish between current spending and productivity enhancing public investments and analyze the...

In this article, polarization measurement is presented as a useful tool for characterizing the net transfers of income between individuals caused by a tax reform. The bipolarization measure, which considers just two poles and involves the disappearance of the middle class, may complement...

We construct an overlapping-generations experiment to test for two alleged departures from Ricardian equivalence. In the first treatment the setting is close to the theoretical model, while in the second we allow for liquidity-constrained consumers. We then introduce uncertainty on future income...

In this paper, we propose two alternative formulations of representative consumer¡¯s endogenous time preference that depends on consumption as well as wealth and/or revenue. We solve one of these formulations and apply it to study the effectiveness of fiscal policies in a small open...