Monthly Archives: November 2013

The Long Short Run

From Brad Delong (full article here): The problem now is that the natural interest rate – that is, the liquid safe nominal interest rate on short-term US Treasury securities – is less than zero. Thus, the central bank cannot push … Continue reading

Posted in Uncategorized | Tagged , , | Leave a comment

On the Origin of States: Stationary Bandits and Taxation in Eastern Congo

From Raul Sanchez de la Sierra: The state is among the greatest developments in human history and a precursor of economic growth. Why do states arise, and when do they fail to arise? A dominant view across disciplines is that states … Continue reading

Posted in Uncategorized | Tagged , , , , , | Leave a comment

Some Local Economic Statistics Eliminated Due to 2013 Budget Sequester

This is awful news. Some Local Economic Statistics Eliminated Due to 2013 Budget Sequester.

Posted in Uncategorized | Leave a comment

Do Financial Frictions Amplify Fiscal Policy? Evidence from Business Investment Stimulus

From Erik Zwick and James Mahon: We estimate the causal effect of temporary tax incentives on equipment investment using a difference-in-differences design and policy shifts in accelerated depreciation. Analyzing data for over 120,000 US firms from 1993 to 2010, we present … Continue reading

Posted in Uncategorized | Tagged , , , , , | 1 Comment

The Economics of Location- Based Tax Incentives

From Ed Glaeser: Many local governments offer rich tax deals to firms to get these firms to come to their cities. In this brief essay, I review the economics of location-based tax incentives. I first address the positive economics of … Continue reading

Posted in Uncategorized | Tagged , , , , , | Leave a comment

Heterogeneous Technology Diffusion and Ricardian Trade Patterns

From William Kerr: This study tests the importance of Ricardian technology differences for international trade. The empirical analysis has three comparative advantages: including emerging and advanced economies, isolating panel variation regarding the link between productivity and exports, and exploiting heterogeneous … Continue reading

Posted in Uncategorized | Tagged , , , , | Leave a comment

Capital Income Taxation, Corporate Taxation, Wealth Transfer Taxes and Consumption Tax Reforms

From Alan Auerbach. He concludes: Advances in theory and evidence have provided us with a better sense of the role that capital income taxation might play in a well-designed tax system. Even without a clear result that capital income taxation … Continue reading

Posted in Uncategorized | Tagged , , , , , , | 1 Comment