Dynamic Scoring: A Back-of-the-Envelope Guide
| Title: | Dynamic Scoring: A Back-of-the-Envelope Guide |
| Author: |
Mankiw, N; Weinzierl, Matthew
Note: Order does not necessarily reflect citation order of authors. |
| Citation: | Mankiw, N. Gregory and Matthew Weinzierl. 2005. Dynamic scoring: A back-of-the-envelope guide. Harvard Institute of Economic Research Working Papers 11000. |
| Full Text & Related Files: |
Mankiw_DynamicScoring.pdf (234.8Kb; PDF) 
|
| Abstract: | This paper uses the neoclassical growth model to examine the extent to which a tax cut pays for itself through higher economic growth. The model yields simple expressions for the steady-state feedback effect of a tax cut. The feedback is surprisingly large: for standard parameter values, half of a capital tax cut is self-financing. The paper considers various generalizations of the basic model, including elastic labor supply departures from infinite horizons, and non-neoclassical production settings. It also examines how the steady-state results are modified when one considers the transition path to the steady state. |
| Published Version: | http://ideas.repec.org/p/nbr/nberwo/11000.html |
| Terms of Use: | This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA |
| Citable link to this page: | http://nrs.harvard.edu/urn-3:HUL.InstRepos:2770515 |
This item appears in the following Collection(s)
-
FAS Scholarly Articles [5171]
Peer reviewed scholarly articles from the Faculty of Arts and Sciences of Harvard University
Contact administrator regarding this item (to report mistakes or request changes)
