Considers the impact of major tax reform (a cut in tax rates) on long-term growth rate. Examines the historical record of the U.S. economy, growth rates of other countries, and evidence from micro-level studies to conclude that tax rate cuts would have modest effects.

Tax reforms are sometimes touted to have strong macroeconomic growth effects. We consider the impact of a major tax reform on the long-term growth rates of the U.S. economy using three approaches. The first approach is to examine the historical record of the U.S. economy to evaluate whether tax...

One view of government fiscal policy is that it stifles dynamic economic growth through the distortionary effects of taxation and inefficient government spending. Another view is that government plays a central role in economic development by providing public goods and infrastructure. This paper...

Mutual funds have become an important intermediary between households and financial markets, especially the equity market. About half of all households have a mutual fund account, and mutual funds hold about one-fifth of household financial assets. Because households have favored equity...

A study of how tax changes in TRA '86 (consumer debt interest and IRA deductions) affected household saving behavior shows that household assets and debt were reallocated but that there was little change in the real level of economic activity.

This paper addresses the question of whether a government entity can invest money on behalf of employees or constituents in a manner comparable to the private sector. We focus on the experience of pension funds operated by state and local governments on behalf of their employees. Using data from...

Reviews Distributional Analysis of Tax Policy.

Examines a broad range of reduced-form and intertemporal models in which each model is calibrated to generate the same initial economy, which allows the authors to focus on model features without concern that initial differences in calibration are determined.

This working paper reconsiders and adds to empirical evidence on the effect of federal government debt and interest rates.

This working paper reconsiders and adds to empirical evidence on the effect of federal government debt and interest rates.