Tax disturbances and real economic activity in the postwar United States

摘要: Abstract This paper investigates the macroeconomic effects of cyclical fluctuations in marginal tax rates. It finds that systematically including variables a standard real business cycle model substantially improves model's ability to reproduce basic facts about postwar U.S. fluctuations. In particular, modeling personal and corporate income rates increases predicted relative variability hours decreases its correlation between average productivity. Fluctuations produce large substitution alter leisure/labor supply decision.