The output effects of tax changes: narrative evidence from Spain

Paula Prieto Gil · Richard C. Morris · Javier J. Pérez · Roberto Ramos

92 citations0/0 files storedSERIEs

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Fiscal Policy and Economic Growth Economic and Fiscal Studies Fiscal Policies and Political Economy

Abstract

This paper estimates the GDP impact of legislated tax changes in Spain using a newly constructed narrative record for the period 1986–2015. Our baseline estimates suggest that a 1% of GDP increase in exogenous taxes depresses output by around 1.3% after 1 year, this negative effect fading away at more distant horizons. We also find that the effects of changes in indirect taxes are larger and that, following a tax increase, investment reacts more than consumption. Overall, our set of estimates is consistent with negative output effects triggered by tax increases, yet the quantitative effects are subject to non-negligible uncertainty that is reflected in wide confidence bands, in line with the extant literature for other countries.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 92 citations exist upstream.

References

2002An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output 2010The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks 1999An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output 2011Identifying Government Spending Shocks: It's all in the Timing*2004A New Measure of Monetary Shocks: Derivation and Implications 1998Costly capital reallocation and the effects of government spending 2013The Dynamic Effects of Personal and Corporate Income Tax Changes in the United States 1989NBER macroeconomics annual 1987

Cited by

2017Is fiscal policy more effective in uncertain times or during recessions?2017Is Fiscal Policy More Effective in Uncertain Times or During Recessions?2017External Stress Early Warning Indicators 2018Optimal Density Forecast Combinations 2018Permissible Collateral and Access to Finance: Evidence from a Quasi-Natural Experiment

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.