The Economic Effects of the Dole Tax Plan

Studies | Taxes

No. 207
Tuesday, October 01, 1996
by Roy G. Boyd and Barry J. Seldon


Notes

  1. See the appendix for a description of the CGE model we used.
  2. For example, computable general equilibrium models are discussed at length in J. B. Shoven and J. Whalley, Applying General Equilibrium (Cambridge, U.K.: Cambridge University Press, 1992).
  3. This study does not report the details of international trade, although the model includes a foreign sector. Details of foreign trade are available from the authors.
  4. It should be noted that these are relative, not nominal, prices. Because production increases in all sectors except one, prices could actually fall if the quantity of money remained constant.
  5. See M. J. Boskin, "Taxation, Saving and the Rate of Interest," Journal of Political Economy, 1978, 86 pt. 2: S3-S27. We use Boskin's savings elasticity estimates for the various income groups, which average around 0.4, for the CGE simulations reported.
  6. Congressional Budget Office, Understanding Fiscal Policy (Washington: U.S. Government Printing Office, 1978), p. 25.
  7. Lawrence B. Lindsey, The Growth Experiment (New York: Basic Books 1990), p. 74-76.
  8. Congressional Budget Office, An Analysis of the Roth-Kemp Tax Cut Proposal (Washington: U.S. Government Printing Office, 1978), p. 45.

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