Download or read book Determining the Consumption Effects of Announced Permanent and Temporary Tax Cuts in Accordance with the Permanent Income Hypothesis written by Aileen Liu and published by . This book was released on 1984 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt: For several years, economists have been debating how well Federal tax policy changes have performed in readjusting the economy. Tax change policies have been instituted periodically since World War II up to the very present. The goals sought by the legislators have varied. The tax cut policy in the Kennedy administration was set up to invigorate a recessionary economy. Under the Reagan administration, tax cuts are a tool to increase savings and investment. Part of the reason for the inconsistency in policy aims is due to the lack of consensus on how a tax cut will perform in a given period . Most predictive models ignore the state of the economy at the time, the degree of consumer optimism, and lags in the adjustment of consumer expectations. These variables are vital in determining the consumers' reactions to a given tax cut during a given economic phase . Moreover, whether consumers can even distinguish the windfalls from a tax cut apart from increases in take home pay from a wage hike, is a matter of debate. Recent discussions have been focused on the temporal nature of the tax cuts. The significance of the issue seems real enough such that cuts are determined and categorized according to their permanent or transitory nature of consumer spending after a tax reduction that is permanent or one that is temporary (either a one-shot rebate or a cut specified to last for one or two years), can be measured to see whether each has a distinctive effect on consumer spending. The widely accepted Permanent Income Hypothesis (PIH) states that transitory changes have their main impact on saving and not on consumption. Permanent Income on which consumer spending is based, is a weighted average of consumers' past incomes, for consumption patterns take time to readjust to increments in today's income. Given this view, a temporary tax cut will barely have an effect on permanent income, since the change is known to be temporary. Consumption will then proceed in the same direction as if there had been no tax change at all . Macroeconomists argue that a rise in income stimulates consumer spending. A tax cut is easily associated with the growth of consumer spending, if one agrees with the premise that consumers have treated the increase in take-horne pay from the tax cut in the same way they treat increases in their take-home pay from other sources (Okun, 1971). Given the supposition that consumers plan their spending patterns over a horizon, the consumers would calculate a larger spending increase today, knowing that they will attain the same tax cut in each future period.
Download or read book Tax Policy and Consumer Spending written by Katsunori Watanabe and published by . This book was released on 1999 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the extent to which the impact of tax policy on consumer spending differs between temporary and permanent, as well as anticipated and unanticipated tax changes. To discriminate between them, we use institutional information such as legal distinction between temporary and permanent tax changes, as well as timing of policy announcement and implementation. We find that the impact of temporary changes is significantly smaller than the impact of permanent changes. We also find that more than 80 per cent of Japanese consumers, including those who distinguish between temporary and permanent tax changes, respond to tax changes at the time of their implementation and not at the time of a policy announcement. We suggest an interpretation that these consumers follow a near-rational decision rule.
Download or read book The Sensitivity of Consumption to Transitory Income written by Robert Ernest Hall and published by . This book was released on 1980 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Temporary Income Taxes and Consumer Spending written by Alan S. Blinder and published by . This book was released on 1978 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Both economic theory and casual empirical observation of the U.S. economy suggest that spending propensities from temporary tax changes are smaller than those from permanent ones, but neither provides much guidance about the magnitude of this difference. This paper offers new empirical estimates of this difference and finds it to he quite substantial. The analysis is based on an amendment of the standard distributed lag version of the permanent in-conic hypothesis that distinguishes temporary taxes from other income on the grounds that the former are "more transitory." This amendment, which is broadly consistent with rational expectations, leads to a nonlinear consumption function. Though the standard error is unavoidably large, the point estimate suggests that a temporary tax change is treated as a 50-50 blend of a normal income tax change and a pure windfall. Over a 1-year planning horizon, a temporary tax change is estimated to have only a little more than half the impact of a permanent tax change of equal magnitude, and a rebate is estimated to have only about 38 percent of the impact.
Download or read book Transitory Consumption and Measurement Errors in the Permanent Income Hypothesis written by Luigi Ermini and published by . This book was released on 1989 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Permanent income Hypothesis and Other Aggregate Consumption Functions written by Robert Glenn James and published by . This book was released on 1978 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Studies in Taxation Public Finance and Related Subjects written by and published by . This book was released on 1981 with total page 388 pages. Available in PDF, EPUB and Kindle. Book excerpt: Studies prepared for the U.S. Congress by the Congressional Research Service (CRS), Library of Congress.
Download or read book Weekly Weather and Crop Bulletin written by and published by . This book was released on 1994 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economic Policy and the Great Stagflation written by Alan S. Blinder and published by Elsevier. This book was released on 2013-09-11 with total page 244 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic Policy and the Great Stagflation discusses the national economic policy and economics as a policy-oriented science. This book summarizes what economists do and do not know about the inflation and recession that affected the U.S. economy during the years of the Great Stagflation in the mid-1970s. The topics discussed include the basic concepts of stagflation, turbulent economic history of 1971-1976, anatomy of the great recession and inflation, and legacy of the Great Stagflation. The relation of wage-price controls, fiscal policy, and monetary policy to the Great Stagflation is also elaborated. This publication is beneficial to economists and students researching on the history of the Great Stagflation and policy errors of the 1970s.
Download or read book Macroeconomics written by Michael Burda and published by Oxford University Press. This book was released on 2022-09-02 with total page 627 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Goals of Macroeconomic Policy written by Martin Prachowny and published by Routledge. This book was released on 2012-11-12 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt: Politicians win elections by promising 'Jobs! Jobs! Jobs!' but in practice these promises quickly fall by the wayside. The Goals of Macroeconomic Policy asks why. It begins with the observation that there is no convincing economic argument that full employment should be the primary objective of economic policy in all circumstances. In the light of this it examines whcy policy has failed so consistantly. It explains this by a theory of the labour market which shows why most workers are happy to operate in a way which militates against full employment. It then proceeds to analyse the rather dire consequences of this for the budget deficit.
Download or read book Economics of Public Finance written by and published by Atlantic Publishers & Distri. This book was released on 1984 with total page 182 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Macroeconomics written by Michael C. Burda and published by Oxford University Press. This book was released on 2017 with total page 621 pages. Available in PDF, EPUB and Kindle. Book excerpt: Macroeconomics teaches students to be young economists, providing a contemporary approach to the subject and a wealth of real-life case studies to allow students to understand how economics works in practice. Responding to the financial crisis, this text explains the modern approach to macroeconomics with simplicity and rigour, while retaining the focus on particular characteristics of the European economy. The authors analyse different theoretical approaches and contextualise theory with up-to-date monetary policy examples. Helpful learning features throughout the text including; boxes, chapter summaries, key concepts, end of chapter exercises, and essay questions, support students' learning, and the book is accompanied by an extensive Online Resource Centre designed to help students take their learning further. Online Resource Centre: Student Resources: Sample exam questions Multiple choice questions Review questions Web appendices Web links Lecturer Resources: Power Point slides Excel based exercises for macroeconomic modelling Lecture plans Case studies Revision questions Solutions to end-of-chapter exercises Test bank VLE cartridge
Download or read book The Effectiveness of Fiscal Policy in Stimulating Economic Activity written by Richard Hemming and published by International Monetary Fund. This book was released on 2002-12 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the theoretical and empirical literature on the effectiveness of fiscal policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can turn negative (i.e., that fiscal contractions can be expansionary). The paper concludes that fiscal multipliers are overwhelmingly positive but small. However, there is some evidence of negative fiscal multipliers.
Download or read book Automatic Fiscal Policies to Combat Recessions written by Laurence S. Seidman and published by Routledge. This book was released on 2015-04-08 with total page 255 pages. Available in PDF, EPUB and Kindle. Book excerpt: Drawing on the most prominent research in the field, this timely book offers bold new fiscal policies that can complement current automatic stabilizers and counter-cyclical monetary policy to help combat recessions. Dr. Seidman argues for an independent fiscal policy board or the Federal Reserve to decide changes in the magnitude of Congress's fiscal policy package of stimulus or restraint, with recommendations going into effect immediately, subject only to Congressional override.
Download or read book Macroeconomics written by N. Gregory Mankiw and published by Macmillan. This book was released on 2003 with total page 600 pages. Available in PDF, EPUB and Kindle. Book excerpt: The fifth edition of the #1 bestselling intermediate macroeconomics text, with coverage based on the most recent data available, plus new student media resources.
Download or read book Intermediate Microeconomics and Its Application written by Walter Nicholson and published by South Western Educational Publishing. This book was released on 2000 with total page 644 pages. Available in PDF, EPUB and Kindle. Book excerpt: This work offers a concise introduction to economic analysis of how markets operate. The author's streamlined approach to the material offers students a textbook that is easy to learn from and interesting to read. Now available in an eighth edition Intermediate Microeconomics and its Application still offers the most clear and concise introduction to economic analysis of how markets operate. The author's streamlined approach to the material and lively new discussions offer students a textbook that is easy to learn from and interesting to read. Completely updated, the text now features expanded coverage of modern finance theory and new applications dealing with current topics such as Internet Auctions.
