This paper examines how supply-side policies may play a role in fighting a low aggregate demand that traps an economy at the zero lower bound (ZLB) of nominal interest rates. Future increases in productivity or reductions in mark-ups triggered by supply-side policies generate a wealth effect...

The ‘cost of living crisis’ is now a substantial part of the UK’s political discourse. The prices of essential goods in some product markets have become politicised in a way not seen for a generation, and there is widespread concern about low pay levels.Most of the new policies offered up...

This paper tests New Classical and Keynesian explanations ofoutput determination within an encompassing "factor utilization"model wherein the output decision by producers is modelled as thechoice of a utilization rate for employed factors. In thisencompassing model, the ratio of actual to normal...

This paper examines how supply-side policies may play a role in fighting a low aggregate demand that traps an economy at the zero lower bound (ZLB) of nominal interest rates. Future increases in productivity or reductions in mark-ups triggered by supply-side policies generate a wealth effect...

This paper draws six observations from the U.S. fiscal policy actions of the 1980s and their apparent macroeconomic aftermath. in each case focusing on implications for familiar debates about economic behavior: (1) Across-the-board cuts in personal income tax rates reduced the government's tax...

In this paper we evaluate the success of policies that were implemented in the 1980s that were designed to improve the workings of the UK labour market. Our primary conclusion is that the Thatcherite reforms succeeded in their goals of weakening union power; may have marginally increased...

New report debunks the idea that Thatcher deregulated financial services.Summary:It is commonly believed that, during the 1980s, Margaret Thatcher presided over a substantial reduction in government regulation of financial services. Indeed, some have blamed this deregulation for the financial...

"'What Did Margaret Thatcher Do'?: A Survey of the Thatcher Prime Ministership's Economic and Social Policies" endeavors to offer a systematic, grounded and properly contextualized, but still concise, summation of the British Prime Minister's conduct in the area of domestic economic and social...

A central problem in applied empirical work is to separate out the patterns in the data that are due to poor production of the data, such as e.g. non-response and measurement errors, from the patterns attributable to the economic phenomena studied. This paper interprets this inference problem as...

In a model with a continuum of imperfectly substitutable laborers and endogenous skill premiums, this paper derives optimal tax formulas as functions of social welfare weights and a small set of estimable statistics. It first demonstrates that differential capital tax, based on capital's effect...

The Annuity Puzzle is that lifetime annuities are not utilized in retirement as often as might be expected. The literature invariably provides demand side explanations: bequest motives, liquidity preferences, crowding out by social security and family insurance, unattractive investment returns,...

Recent quantitative studies predict large welfare gains from reducing tax distortions in a closed economy, despite costly transitional dynamics to more efficient tax systems. This paper examines transitional dynamics and gains of tax reforms for countries in a global economy, and provides...

Die durch die Bekämpfung der Corona-Epidemie verursachte Dämmung des gesellschaftlichen und wirtschaftlichen Lebens wird erhebliche wirtschaftliche Konsequenzen haben. Wichtige Be-reiche der Industrie und der Dienstleistungen sind ganz oder teilweise heruntergefahren wor-den. Eine...

I study the supply-side effects of a unique monetary shock – the 2016 Indian demonetization – that made 86% of currency in circulation illegal overnight. Exploiting cross-sectional variation in firm and industry characteristics that correlate with cash usage and exposure to the informal...

"China's continuous, rapid economic growth since the Reform and Opening up of the country in the early 1980s has been praised as a miracle of the world economy. However, since 2012, the rate of growth has slowed down, rendering some people pessimistic about the country's economic prospects. This...

"The author argues that Margaret Thatcher's free-market arguments highlighted the economic shortcomings of Keynesianism and socialism and paved the way for a significant realignment of the Conservative Party and re-thinking of British economics."

The State of New York recently enacted business tax reforms. The first legislative act launched the START-UP NY program in 2014. It created tax free enterprise zones throughout the state to incentivize business incubation within, or relocation of existing firms to, the State of New York. In that...

Purpose Deepening supply-side structural reform is the main objective of the economic work since the Chinese economy entered a new stage of development. By adopting the fundamental principles and methodologies of Marxist political economy, the authors can provide clarifications on the three...

Aggregate demand is important, both in the short and the long run, but a basic distinction must be made between dual and mature economies. Mature economies may su¤er from a structural aggregate problem ("secu- lar stagnation"): full-employment growth may be impossible in the absence of...

This paper investigates the effects of credit rating downgrades, equity mispricing and CEO overconfidence on zero-leverage policy, using data for listed United States firms during the period 1980-2012. The results show that (1) the likelihood of zero-leverage increases significantly following a...

A history of "supply-side economics" and the Laffer Curve published by Art Laffer's economic consulting firm in 2003. It was reviewed and edited by Laffer himself, who later reprinted it in a book published by the Laffer Center: "The Pillars of Reaganomics" (San Francisco, 2014). It is,...

This book explores the origins of Arthur Laffer’s economic theories and how they became a part of mainstream economic policy. Utilizing interviews and archival material, Laffer’s life is traced from his early education through to his time working for the Nixon and Reagan administrations....

This book explores the origins of Arthur Laffer’s economic theories and how they became a part of mainstream economic policy. Utilizing interviews and archival material, Laffer’s life is traced from his early education through to his time working for the Nixon and Reagan administrations....

"This book investigates the policies of the Thatcher, Major and Blair governments and their approaches towards concentration of economic and political power. The book will be of interest to students and scholars of contemporary British history, political economy and politics, as well as specific...

Previous analyses of relationships between crude oil and natural gas markets focused primarily on demand-side connections. We provide a model and empirical evidence of important supply-side connections. First, crude oil and natural gas production require common inputs: drilling rigs, well...

This paper considers the effects of changing expectations under macroeconomic policies that rely on targeting nominal variables, such as NGDP targeting. These proposals, in line with a dynamic conception of the equation of exchange, argue that the monetary authority can achieve any dynamic...

In this work we develop a set of labour market and fiscal policy experiments upon the labour and credit augmented "Schumpeter meeting Keynes" agent-based model. The labour market is declined under two institutional variants, the "Fordist" and the "Competitive" set-ups meant to capture the...

This paper investigates the potential for a causal relationship between certain supply-side policies and UK output and productivity growth between 1970 and 2009. We outline an open economy DSGE model of the UK in which productivity growth is determined by the tax and regulatory environment faced...

In this work we develop a set of labour market and fiscal policy experiments upon the labour and credit augmented "Schumpeter meeting Keynes" agent-based model. The labour market is declined under two institutional variants, the "Fordist" and the "Competitive" set-ups meant to capture the...

In this work we develop a set of labour market and fiscal policy experiments upon the labour and credit augmented "Schumpeter meeting Keynes" agent-based model. The labour market is declined under two institutional variants, the "Fordist" and the "Competitive" set- ups meant to capture the...

The socio-economic impact of Reaganomics and its long-run deleterious legacy is documented. The preponderance of data indicate that economic growth was not particularly impressive in the wake of the tax cuts of 1981 or 1986. GDP did snap back to potential but failed to accelerate beyond the...

Purpose From the perspective of supply-side structural reform, the purpose of this paper is to analyze and discuss the necessity and feasibility of China’s foreign trade transformation and development and explores the realization path accordingly. Design/methodology/approach This paper mainly...

"In recent years, the "supply-side structural reform" has become a popular term in all regions and fields in China. The supply-side structural reform is the key component of the Chinese government's economic policy framework during the "13th Five-Year Plan" period. It is crucial in both theory...