We explore the short-run effects of fiscal policy using simulations of an empirical, rational-expectations, open-economy macromodel developed at the Federal Reserve Board. Based on this model, we find that tax cuts and spending increases generally stimulate economic activity in the short run,...

Highlights difficulties related to assessing macroeconomic feedback from changes in tax law and federal spending. Considers the advantages and complications involved in dynamic scoring of budget proposals.

We reexamine the distributional effects of the 2001 and 2003 tax changes, incorporating two factors omitted in standard distributional estimates: the financing of the tax changes, and the implications of behavioral responses for both after–tax income and other aspects of well–being. Using...

Examines the probable impact of the (Clinton) administration's health proposal on the nation's job market. Discusses the proposal in-depth and analysis it in relation to the current United States health insurance system. Focuses the analysis on the long run, meaning a period over which real cash...