Arbeitspapier
Fiscal spillovers: The case of US corporate and personal income taxes
This paper extends the identification of unanticipated changes in average federal corporate and personal income tax rates in the United States, as proposed in Mertens and Ravn (2013), to the end of 2019, and assesses their propagation to economies with tight links to the US economy. While cuts in both taxes lead to significant short-run expansions in the US economy, their spillover effects on other countries differ markedly. A cut in corporate taxes can produce negative spillovers, indicating that the contractionary effects associated to the reallocation of investment and jobs by multinational firms outweigh the potential positive effects of increased demand for country-specific goods through trade with the US. The spillover effects of lower personal income taxes are more heterogeneous across countries but are, on average, expansionary, depending on the country-specific monetary policy stance.
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Canada Staff Working Paper ; No. 2021-41
- Klassifikation
-
Wirtschaft
Taxation, Subsidies, and Revenue: General
Business Fluctuations; Cycles
Fiscal Policy
International Business Cycles
- Thema
-
Business fluctuations and cycles
Econometric and statistical methods
Exchange rateregimes
Fiscal policy
International topics
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Hanson, Madeline
Hauser, Daniela
Priftis, Romanos
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Canada
- (wo)
-
Ottawa
- (wann)
-
2021
- DOI
-
doi:10.34989/swp-2021-41
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Hanson, Madeline
- Hauser, Daniela
- Priftis, Romanos
- Bank of Canada
Entstanden
- 2021
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