Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/266262 
Year of Publication: 
2022
Series/Report no.: 
DIW Discussion Papers No. 2022
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
This paper investigates the dynamic effects of tax changes on the cross-sectional distribution of disposable income in the United States using a narrative identification approach. I distinguish between changes in personal and corporate income taxes and quantify the distributional effects on families and business owners. I document that tax changes affect incomes along the distribution differently and that the family status and the source of income matters. Tax reductions benefit high incomes and disadvantage lower incomes. Entrepreneurs and families benefit more from tax cuts than individuals without business income and non-families.
Subjects: 
Income Distribution
Functional Vector Autoregressions
Tax Policy Shocks
JEL: 
C11
C32
E32
E62
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.