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Replication data for: Do Output Contractions Cause Investment in Fiscal Capacity?

Version
V0
Resource Type
Dataset
Creator
  • Gillitzer, Christian
Publication Date
2017-05-01
Description
  • Abstract

    This paper shows that an economic slump can induce a government to invest in fiscal capacity. Large negative income shocks stress the revenue-raising capability of narrow tax bases, making an increase in tax base breadth desirable relative to its fixed implementation cost. A broader tax base enables revenue to be raised at lower tax rates, and so lower deadweight loss. The behavior of US state governments during the Great Depression supports the model: states experiencing larger than average negative income shocks were more likely to adopt a retail sales tax than were states experiencing smaller than average income shocks.
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/pol.20150161 (Text)
Publications
  • Gillitzer, Christian. “Do Output Contractions Cause Investment in Fiscal Capacity?” American Economic Journal: Economic Policy 9, no. 2 (May 2017): 189–227. https://doi.org/10.1257/pol.20150161.
    • ID: 10.1257/pol.20150161 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-13

Gillitzer, Christian (2017): Replication data for: Do Output Contractions Cause Investment in Fiscal Capacity?. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E114642