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The supply-side consequences of U.S. fiscal policy in the 1980s

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  • M.A. Akhtar
  • Ethan S. Harris
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    Abstract

    Fiscal policy changes in the 1980s had several possible implications for the long-run performance of the U.S. economy. The authors review the impact of tax reductions on saving, investment, and work effort, the implications of increased federal deficits for national saving and private investment, and the effect of shifts in the composition of government spending on public capital formation and on research and development. Using results from the empirical literature, the authors attempt to quantify the effects of these fiscal changes on the nation's economic potential.

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    File URL: http://www.newyorkfed.org/research/quarterly_review/1992v17/v17n1article1.pdf
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    Bibliographic Info

    Article provided by Federal Reserve Bank of New York in its journal Quarterly Review.

    Volume (Year): (1992)
    Issue (Month): Spr ()
    Pages: 1-20

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    Handle: RePEc:fip:fednqr:y:1992:i:spr:p:1-20:n:v.17no.1

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    Keywords: Fiscal policy ; Economic conditions - United States;

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    1. Roger S. Smith, 1990. "Factors Affecting Saving, Policy Tools, and Tax Reform: A Review," IMF Staff Papers, Palgrave Macmillan, vol. 37(1), pages 1-70, March.
    2. Steven F. Venti & David A. Wise, 1987. "Have IRAs Increased U.S. Saving?: Evidence from Consumer Expenditure Surveys," NBER Working Papers 2217, National Bureau of Economic Research, Inc.
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