Canto / Joines / Laffer Foundations of Supply-Side Economics

Theory and Evidence
1. Auflage 2014
ISBN: 978-1-4832-7157-6
Verlag: Elsevier Science & Techn.
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 300 Seiten, Web PDF

Foundations of Supply-Side Economics: Theory and Evidence is composed of a series of papers containing both theoretical and empirical analyses of a set of issues in government fiscal policy. The type of analysis employed in the book is standard neoclassical economics, and this analysis is used to study the macroeconomic incentive effects of taxation. The book contains contributions that cover the analysis of the effects of taxes imposed purely for generating revenues; the process of capital formation; and an attempt to integrate supply-side analysis into a traditional macroeconomic framework. Reports on the empirical evidence on taxation and economic activity and the estimation of a small macroeconomic model of the United States for the postwar period; description of a method of calculating effective marginal tax rates on factor incomes using available U.S. data; and the estimation of the effect of fiscal policy on private investment in plant and equipment are presented as well. Economists will find the book highly insightful.

Victor A. Canto is the Chief Economist and Managing Director of Global Strategies at Cadinha & Co. and founder and Chairman of La Jolla Economics. He was an advisor to the Lazard Capital Allocator Series, Advisor to the Nestegg Funds, Trustee of StockJungle.com in Culver City, California, Director, Chief Investment Officer, and Portfolio Manager of Calport Asset Management, and President and Director of Research of A.B. Laffer, V. A. Canto & Associates.He was a tenured Associate Professor of finance and business economics at the University of Southern California (USC) from 1983 to 1985. Dr. Canto was Assistant Professor of finance and business economics at the University of Southern California from 1977 to 1983 and Visiting Professor at the Universidad Central del Este in the Dominican Republic. He was also a Visiting Professor of economics at the University of California at Los Angeles (UCLA) during the winter of 1987.During 1980, Dr. Canto was a consultant to the Financial Council of Puerto Rico; during 1977, an advisor to the economic Studies Division of the Dominican Republic's Central Bank. During 1975 he was technical advisor to the Finance Minister of the Dominican Republic.Dr. Canto received a B Sc. in civil engineering from the Massachusetts Institute of Technology in 1972, an M.A. and Ph. D. in economics from the University of Chicago (1974, 1977).Dr. Canto has authored, edited, or co-edited a number of books, including the landmark Foundations of Supply-Side Economics, as well as Monetary Policy, Taxation, and International Investment Strategy; Supply-Side Portfolio Strategies; and Currency Substitution: Theory and Evidence from Latin America , Understanding Asset Allocation as well as Cocktail Economics. Economic Disturbances and Equilibrium in an Integrated Global Economy ( Forthcoming).He is the recipient of the Supremo de Plata awarded by the Dominican Republic JC to the Outstanding Young Man of 1983, and the recipient of the University of Southern California University Scholar award. He is a member of Chi Epsilon (the civil engineering honorary society).Victor Canto's articles have appeared in many of the leading economic journals, including Economic Inquiry, Journal of Macroeconomics, The International Trade Journal, Journal of Business and Economic Statistics, The Southern Economic Journal, Applied Economics, Weltwirstchaftliches Archiv, The CATO Journal, Public Finance, The Journal of International Money and Finance and The Journal of Wealth Management. In addition to his principal fields of interest--International Economics, Public Finance, and Macroeconomics, Dr. Canto has been published in the Wall Street Journal and the Investor's Business Daily. He authored articles on energy markets for the Public Utilities Fortnightly, and the Oil and Gas Journal, as well as a series of articles on portfolio strategy for the Financial Analysts Journal. He contributed 'Exotic Currencies,” to The New Palgrave Dictionary of Money and Finance, published by MacMillan Press Limited in 1992. He also was a contributing editor for National Review Online Financial.

Autoren/Hrsg.

Canto, Victor A.

Joines, Douglas H.

Laffer, Arthur B.

Inhaltsverzeichnis

1;Front Cover;1
2;Foundations of Supply-Side Economics: Theory and Evidence;4
3;Copyright Page;5
4;Table of Contents;6
5;Preface;10
6;Introduction;16
7;Chapter 1. TAX RATES, FACTOR EMPLOYMENT, MARKET PRODUCTION, AND WELFARE;18
7.1;1. The Model;19
7.2;2. Taxation and Market Activity;22
7.3;3. Taxation and Revenue;25
7.4;4. The Tax Structure, Market Output, and Welfare;30
7.5;5. The Empirical Relevance of the Prohibitive Range;34
7.6;6. Some Numerical Examples;36
7.7;7. Conclusion;40
7.8;References;41
8;Chapter 2. TAXATION IN A CLOSED ECONOMY INTERTEMPORAL MODEL WITH A VARIABLE SUPPLY OF LABOR TO THE MARKET SECTOR;42
8.1;Introduction;42
8.2;1. The Model;43
8.3;2. The Government Sector;48
8.4;3. Long-Run Effects of Taxes;49
8.5;4. A Special Case;53
8.6;5. Welfare Ranking of the Tax Policies;55
8.7;6. Concluding Remarks;57
8.8;References;60
9;Chapter 3. A NEOCLASSICAL MODEL OF FISCAL POLICY, EMPLOYMENT, AND CAPITAL ACCUMULATION;62
9.1;1. The Model;64
9.2;2. Comparative Statics of the Individual's Maximization Problem;69
9.3;3. Government Fiscal Policies;70
9.4;4. General Equilibrium;75
9.5;5. Summary;76
9.6;Appendix A. Evaluation of Changes in ht*+1;77
9.7;Appendix B. Further Assumptions behind the Theoretical Model and Resulting Implications Concerning the Existence of Bequests;78
9.8;Appendix C. Steady-State Effects of Taxation on Factor Employment in a Cobb-Douglas World;84
9.9;References;87
10;Chapter 4. THE REVENUE EFFECTS OF THE KENNEDY TAX CUTS;89
10.1;1. A Simple Model;90
10.2;2. Historical Antecedents of the Laffer Curve;94
10.3;3. Existing Empirical Evidence on Tax Rates, Economic Activity, and Tax Revenues;96
10.4;4. Time-Series Estimates;102
10.5;5. Effects on Other Economic Variables;109
10.6;6. Transfer Function Estimates;113
10.7;7. Conclusions;115
10.8;Appendix;117
10.9;References;119
11;Chapter 5. FISCAL POLICY AND THE LABOR MARKET;121
11.1;1. Introduction;121
11.2;2. The Supply of Labor;122
11.3;3. The Demand for Labor;128
11.4;4. Empirical Implementation of the Model;129
11.5;5. Simulation of the Model;131
11.6;6. Summary;135
11.7;Appendix;136
11.8;References;139
12;Chapter 6. ESTIMATES OF EFFECTIVE MARGINAL TAX RATES ON FACTOR INCOMES;141
12.1;1. Introduction;141
12.2;2. Some Caveats;143
12.3;3. The Nature of Available Data;144
12.4;4. A Hypothetical Tax Structure;145
12.5;5. Relation of Hypothetical Tax Structure to Available Data;148
12.6;6. Some Remaining Issues;151
12.7;7. Alternative Tax Rate Series;154
12.8;8. Behavior of Tax Rates over Time;159
12.9;9. Uses of Components of Tax Rates;177
12.10;10. Summary;178
12.11;References;179
13;Chapter 7. GOVERNMENT FISCAL POLICY AND PRIVATE CAPITAL FORMATION—SOME AGGREGATE TIME-SERIES ESTIMATES;181
13.1;1. Introduction;181
13.2;2. The Hypotheses to Be Tested;182
13.3;3. Methodology;186
13.4;4. Identification, Estimation, and Diagnostic Checks of Transfer Function Models;189
13.5;5. Choice of a Government Spending Variable;190
13.6;6. The Data;192
13.7;7. Univariate Time-Series Models for Exogenous Variables;195
13.8;8. Transfer Function Models for INVS;197
13.9;9. Transfer Function Models for INVE;203
13.10;10. Comparison of Results for INVS and INVE;205
13.11;11. Results for Selected Subperiods;212
13.12;12. Conclusion;218
13.13;Appendix;220
13.14;References;222
14;Chapter 8. WHAT DOES A TAX CUT DO?;224
14.1;1. Introduction;224
14.2;2. Econometric Specifications of the Model;226
14.3;3. Some Econometric Issues;228
14.4;4. An Empirical Model of the U.S. Economy;230
14.5;5. Discussion of the Estimates;233
14.6;6. Policy Analysis;235
14.7;Appendix;239
14.8;References;240
15;Chapter 9. PERSISTENT GROWTH RATE DIFFERENTIALS AMONG STATES IN A NATIONAL ECONOMY WITH FACTOR MOBILITY;241
15.1;1. The Model;243
15.2;2. Some Theoretical and Empirical Caveats;251
15.3;3. Empirical Evidence: The States' Performance;254
15.4;4. Summary and Conclusions;262
15.5;Appendix A. Data Sources;265
15.6;Appendix B. Derivation of States' Personal Income;265
15.7;Appendix C. The States' Performance Relative to Their Region: The Seemingly Unrelated Regression Estimates;266
15.8;References;271
16;Chapter 10. THE MISSING EQUATION: THE WEDGE MODEL ALTERNATIVE;273
16.1;Introduction;273
16.2;1. The IS-LM Framework;274
16.3;2. A More General Model;276
16.4;3. The IS Curve Revisited;279
16.5;4. The Effects of Government Expenditures;281
16.6;5. The Effects of Nonneutral Taxes;284
16.7;6. Deficit Financing: The Money and Bond Markets;288
16.8;7. Concluding Remarks;289
16.9;References;291
17;Index;294