scholarly journals Capital Taxation During the U.S. Great Depression

2012 ◽  
Vol 127 (3) ◽  
pp. 1515-1550 ◽  
Author(s):  
Ellen R. McGrattan
Keyword(s):  
General Equilibrium ◽  
Great Depression ◽  
Equilibrium Model ◽  
Government Spending ◽  
Capital Stock ◽  
General Equilibrium Model ◽  
Capital Taxation ◽  
Slow Recovery ◽  
Hours Worked ◽  
The U.S

AbstractPrevious studies of the U.S. Great Depression find that increased government spending and taxation contributed little to either the dramatic downturn or the slow recovery. These studies include only one type of capital taxation: a business profits tax. The contribution is much greater when the analysis includes other types of capital taxes. A general equilibrium model extended to include taxes on dividends, property, capital stock, excess profits, and undistributed profits predicts patterns of output, investment, and hours worked that are more like those in the 1930s than found in earlier studies. The greatest effects come from the increased taxes on corporate dividends and undistributed profits.

scholarly journals Contributions of U.S. Crop Subsidies to Biofuel and Related Markets

2010 ◽  
Vol 42 (4) ◽  
pp. 743-756 ◽  
Author(s):  
Stephen Devadoss ◽  
Jude Bayham
Keyword(s):  
Social Welfare ◽  
General Equilibrium ◽  
Ethanol Production ◽  
Equilibrium Model ◽  
Government Spending ◽  
Cellulosic Ethanol ◽  
Welfare Loss ◽  
General Equilibrium Model ◽  
Feedstock Production ◽  
The U.S

The U.S. crop subsidies provide incentives for farmers to expand feedstock production, which benefits the biofuel producers by lowering input costs. This study develops a general equilibrium model to analyze the effects of a reduction in the U.S. crop subsidy on biofuel industries and social welfare. The impacts of feedstock policies on the biofuel market are marginal. In contrast, the biofuel mandate has a larger impact and counteracts the effects of the crop subsidy reduction. The mandate increases the demand for feedstock and causes not only grain ethanol, but also cellulosic ethanol production to rise. The mandate exacerbates the distortion, and government spending increases significantly, leading to greater welfare loss.

scholarly journals Analytical General Equilibrium Effects of Energy Policy on Output and Factor Prices

2011 ◽  
Vol 10 (2) ◽  
Author(s):  
Don Fullerton ◽  
Garth Heutel
Keyword(s):  
Carbon Dioxide ◽  
Sensitivity Analysis ◽  
General Equilibrium ◽  
Energy Policy ◽  
Equilibrium Model ◽  
General Equilibrium Model ◽  
Annual Income ◽  
Annual Consumption ◽  
Parameter Values ◽  
The U.S

Abstract Using an analytical general equilibrium model, we find solutions for the effect of energy policy on factor prices as well as output prices. We calibrate the model to the U.S. economy, and we consider a tax on carbon dioxide. By looking at expenditure and income patterns across household groups, we quantify the uses-side and sources-side incidence of the tax. When households are categorized either by annual income or by total annual consumption as a proxy for permanent income, the uses-side incidence is regressive. This result is robust to sensitivity analysis over various parameter values. The sources-side incidence can be progressive, U-shaped, or regressive. Results on the sources side are sensitive to parameter values.

scholarly journals Phased-In Tax Cuts and Economic Activity

2006 ◽  
Vol 96 (5) ◽  
pp. 1835-1849 ◽  
Author(s):  
Christopher L House ◽  
Matthew D Shapiro
Keyword(s):  
Economic Growth ◽  
General Equilibrium ◽  
Equilibrium Model ◽  
Economic Activity ◽  
Dynamic General Equilibrium ◽  
General Equilibrium Model ◽  
Slow Recovery ◽  
Tax Rate ◽  
Dynamic General Equilibrium Model ◽  
Aggregate Effects

This paper uses a dynamic general equilibrium model to analyze and quantify the aggregate effects of the timing of tax rate changes enacted in 2001 (which called for successive rate reductions through 2006) and 2003 (which made immediate tax rate cuts scheduled for 2004 and 2006). The phased-in nature contributed to the slow recovery from the 2001 recession, while the elimination of the phase-in helped explain the increase in economic activity in 2003. The simulations suggest while the tax policy was a drag on the economy in 2001 and 2002, it increased economic growth in 2003, once phase-ins were eliminated.

scholarly journals Comparable Worth in a General Equilibrium Model of the U.S. Economy

10.3386/w2090 ◽  
1986 ◽  
Author(s):  
Perry Beider ◽  
B. Douglas Bernheim ◽  
Victor Fuchs ◽  
John Shoven
Keyword(s):  
General Equilibrium ◽  
Equilibrium Model ◽  
General Equilibrium Model ◽  
Comparable Worth ◽  
The U.S
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