Foundations of Supply-Side Economics

Theory and Evidence

Victor A. Canto, Douglas H. Joines, Arthur B. Laffer

• Publisher: Academic Press
• Year: 2014
• Print ISBN:
  9780121588205
• eBook ISBN:
  9781483271576
• Topic: Business
• Subtopic: Business General
• Index: Business

Foundations of Supply-Side Economics: Theory and Evidence is composed of a series of papers containing both theoretical and empirical analyses of a set of issues in government fiscal policy. The type of analysis employed in the book is standard neoclassical economics, and this analysis is used to study the macroeconomic incentive effects of taxation. The book contains contributions that cover the analysis of the effects of taxes imposed purely for generating revenues; the process of capital formation; and an attempt to integrate supply-side analysis into a traditional macroeconomic framework. Reports on the empirical evidence on taxation and economic activity and the estimation of a small macroeconomic model of the United States for the postwar period; description of a method of calculating effective marginal tax rates on factor incomes using available U.S. data; and the estimation of the effect of fiscal policy on private investment in plant and equipment are presented as well. Economists will find the book highly insightful.

Table of contents

• Front Cover
• Foundations of Supply-Side Economics: Theory and Evidence
• Copyright Page
• Table of Contents
• Preface
• Introduction
• Chapter 1. TAX RATES, FACTOR EMPLOYMENT, MARKET PRODUCTION, AND WELFARE
• Chapter 2. TAXATION IN A CLOSED ECONOMY INTERTEMPORAL MODEL WITH A VARIABLE SUPPLY OF LABOR TO THE MARKET SECTOR
• Chapter 3. A NEOCLASSICAL MODEL OF FISCAL POLICY, EMPLOYMENT, AND CAPITAL ACCUMULATION
• Chapter 4. THE REVENUE EFFECTS OF THE KENNEDY TAX CUTS
• Chapter 5. FISCAL POLICY AND THE LABOR MARKET
• Chapter 6. ESTIMATES OF EFFECTIVE MARGINAL TAX RATES ON FACTOR INCOMES
• Chapter 7. GOVERNMENT FISCAL POLICY AND PRIVATE CAPITAL FORMATION—SOME AGGREGATE TIME-SERIES ESTIMATES
• Chapter 8. WHAT DOES A TAX CUT DO?
• Chapter 9. PERSISTENT GROWTH RATE DIFFERENTIALS AMONG STATES IN A NATIONAL ECONOMY WITH FACTOR MOBILITY
• Chapter 10. THE MISSING EQUATION: THE WEDGE MODEL ALTERNATIVE
• Index