Tag Archives: Taxes

Comparative Advantage and Optimal Trade Policy

From Arnaud Costinot, Dave Donaldson, Jonathan Vogel, Iván Werning: The theory of comparative advantage is at the core of neoclassical trade theory. Yet we know little about its implications for how nations should conduct their trade policy. For example, should import sectors with weaker … Continue reading

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Tax Benefits to Housing and Inefficiencies in Location and Consumption

From David Albouy and Andrew Hanson: Tax benefits to owner-occupied housing provide incentives for housing consumption, offsetting weaker disincentives of the property tax. These benefits also help counter the penalty federal taxes impose on households who work in productive high-wage … Continue reading

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Competing for Global Capital or Local Voters? The Politics of Business Location Incentives

From Nathan Jensen, Edmund Malesky, Matthew Walsh: The competition for global capital has led to wars between countries, states, and cities, as to who can offer the most attractive fiscal incentives to firms. In this study, we examine the domestic politics of … Continue reading

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Who benefits from state corporate tax cuts?

Here is a new VOXEU summary of my job market paper for their job market paper series: State and local governments have been increasing business location incentives and cutting corporate taxes to attract businesses to their jurisdictions. For instance, Jay Inslee, the … Continue reading

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3 Links on Corporate Profits

1. Jim Tankersley writes on Boeing and state corporate tax breaks and profiles my job market paper with Juan Carlos Suárez Serrato on the welfare effects of cutting corporate taxes in an open economy 2. Enrico Moretti on the tech boom and … Continue reading

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Slides on Thomas Picketty’s new book on Capital

Here are slides. HT Cardiff Garcia

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The Dynamic Effects of Personal and Corporate Income Tax Changes in the United States

From Karel Mertens and Morten Ravn: This paper presents evidence on the aggregate effects of changes in federal tax policy in the United States in the post-WWII sample. Exogenous changes in taxes are identified in a vector autoregressive model by proxying latent … Continue reading

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The Future of Capital Income Taxation

From Alan Auerbach: The case against capital income taxation is stronger now than when Pechman wrote [in 1900], given the difficulty of collecting capital income taxes in a world of financial innovation and capital mobility. […] The rising importance of financial … Continue reading

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Rethinking capital and wealth taxation

From Thomas Piketty and Emmanuel Saez: This paper reviews recent developments in the theory of optimal capital taxation. We emphasize three main rationales for capital taxation. First, the frontier between capital and labor income flows is often fuzzy, thereby lending … Continue reading

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Boeing’s Confidential Site Location Wish List

From the Seattle Times: Boeing says factories for its planned 777X will require total investment of up to $10 billion, but states competing for the work are asked to shrink that tab by providing the site and facilities at “no … Continue reading

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