A Tax-Based Test for Nominal Rigidities (Classic Reprint) - Hardcover

James M. Poterba

Hardcover

ISBN 10: 0666464359 ISBN 13: 9780666464354

Publisher: Forgotten Books, 2018

Synopsis

Explore how taxes shift from direct to indirect and what that means for prices, wages, and output in the real world.

This book examines how tax design can move the burden between buyers and sellers and what happens when wages and prices don’t adjust quickly. Using British and American data, it tests whether nominal rigidities shape the short-run effects of tax changes, including the famous 1979 Thatcher reform. The analysis considers both theory and empirical evidence, aiming to clarify policy implications for inflation, growth, and fiscal strategy.

• Learn how direct versus indirect taxes can affect prices, wages, and output in the short run.
• See how researchers test for nominal rigidities using time-series data and impulse response analysis.
• Understand the role of tax reforms in real economies and the potential limits of conventional tax theory.
• Discover how empirical results could influence tax policy and macroeconomic stability.

Ideal for readers interested in macroeconomics, tax policy, and how tax design interacts with inflation and growth.

About this title

About the Author

James M. Poterba is Mitsui Professor in the Department of Economics at MIT. He has been Director of the NBER Public Economics Research Program since 1991 and has edited volumes 6-20 of "Tax Policy and the Economy".

Edition details

• Publisher: Forgotten Books
• Publication date: 2018
• Language: English
• ISBN 10: 0666464359
• ISBN 13: 9780666464354
• Binding: Hardcover
• Number of pages: 64