The U.S. is nearing the end of its ninth recession since the Second World War. This recession was caused by events outside of the agricultural sector, and the recovery will be due to factors outside the sector. Yet agricultural production, costs, and income will be affected by general economic...

Since its enactment in 1975, the Earned Income Tax Credit (EITC) has evolved from a small program to alleviate some of the tax burden of the payroll and income tax on low–income working parents to become a significant part of the Federal government's redistribution efforts. This paper presents...

We model an empirically estimated fiscal policy reaction function (FPRF) in a macroeconomic growth model. In general, an FPRF uses information about the path of past and expected future macroeconomic events and fiscal policy to forecast future fiscal policy reactions. We show that an empirically...

This paper discusses several issues that arise in the process of analyzing the macroeconomic effects of tax policy proposals in a way that is of practical use to legislators. In the current federal legislative process, much of the economic analysis of tax legislation boils down to a single set...

This study uses a large panel of tax returns from 1999 to 2008 to investigate how taxes affect the decision to realize gains. The study distinguishes the persistent effect of tax changes from the transitory effect. Similar to earlier studies in the literature, we use the generalized Tobit model...