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QCGBF Virtual Seminar Series: James Cloyne: Short-Term Tax Cuts, Long-Term Stimulus - 21 November 2022

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About the Event

The Qatar Centre for Global Banking & Finance welcomes James Cloyne from the the University of California Davis to present this virtual seminar.


Paper Abstract

We study the persistent effects of temporary changes in U.S. federal corporate and personal income tax rates using a narrative identification approach. A corporate income tax cut leads to a sustained increase in GDP and productivity, with peak effects between five and eight years. R&D spending and capital investment display hump-shaped responses while hours worked and employment are much less affected.

In contrast, personal income tax cuts trigger a short-lived boost to GDP, productivity and hours worked but have no long-term effects. We develop and estimate an endogenous growth model with variable factor utilization and show that these features generate a pro-cyclical response of productivity which is key to account for our empirical findings.


At this event

David Aikman

David Aikman

Director of the Qatar Centre for Global Banking & Finance

Rhys Michael Bidder

Rhys Michael Bidder

Deputy Director of the Qatar Centre for Global Banking & Finance

Francesca Monti

Francesca Monti

Advisor, Qatar Centre for Global Banking & Finance

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Event details

21 November 2022

Online event