The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks

@article{Romer2007TheME,
  title={The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks},
  author={Christina D. Romer and David H. Romer},
  journal={Macroeconomics: Aggregative Models eJournal},
  year={2007}
}
This paper investigates the impact of changes in the level of taxation on economic activity. We use the narrative record -- presidential speeches, executive-branch documents, and Congressional reports -- to identify the size, timing, and principal motivation for all major postwar tax policy actions. This narrative analysis allows us to separate revenue changes resulting from legislation from changes occurring for other reasons. It also allows us to further separate legislated changes into those… 

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