This paper evaluates the quantitative macroeconomic effects of the persistent decline of income and corporate tax rates in Israel during the 2000s. The analysis is based on the simulation of a calibrated model, given a parameterized version of the tax rates process in this period. The results...

This article considers the question, raised by Beaudry and Portier in their recent articles, of whether "news shocks" can lead to expansions and contractions that look like business cycle movements. News shocks are to be thought of solely as affecting expectations (regarding future events) and...

This article considers the question, raised by Beaudry and Portier in their recent articles, of whether "news shocks" can lead to expansions and contractions that look like business cycle movements. News shocks are to be thought of solely as affecting expectations (regarding future events) and...