Short-Term Tax Cuts, Long-Term Stimulus
We study the macroeconomic effects of corporate income taxes on innovation and productivity in the United States. Using narrative-identified tax changes from 1950 to 2019, we find …
james-cloyne
Paolo Surico
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1 min read
Who Gains from Corporate Tax Cuts?
Goods producers increase their capital expenditure and employment in response to a cut in marginal corporate income tax rates or an increase in investment tax credits. In contrast, …
james-cloyne
Monetary Policy, Corporate Finance, and Investment
In response to a change in interest rates, younger firms not paying dividends adjust both their capital expenditure and borrowing significantly more than older firms paying …
james-cloyne
Do Tax Increases Tame Inflation?
The answer is ``yes'' for personal income taxes but ``no'' for corporate income taxes. Using narrative-identified US federal tax changes post-World War II and disaggregated …
james-cloyne
Monetary Policy when Households Have Debt: New Evidence on the Transmission Mechanism
Using household survey data for the U.S. and the U.K., we show that the aggregate response of consumption to interest rate changes is driven by households with a mortgage. Outright …
james-cloyne
Household Debt and the Dynamic Effects of Income Tax Changes
Using a new narrative measure of fiscal policy shocks for the U.K., we show that households with mortgage debt exhibit large and significant consumption responses to tax changes. …
james-cloyne