Tax news in good and bad times

Publicado en

  • Economics Letters


  • We investigate whether the effect of tax news depends on the state of the economy. Using U.S. quarterly data, we show that news about future tax cuts are more contractionary during recessions. This nonlinearity is mainly due to the response of durable consumption and, especially, nonresidential investment.

fecha de publicación

  • 2021

Líneas de investigación

  • Anticipated tax shocks
  • Fiscal policy
  • Policy foresight


  • 207