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主讲人 |
Liyang Hong |
简介 |
<p>This paper studies the effects of federal tax shocks on the economy. Being different from the existence literature, it takes into account the responses of the state-level fiscal policies and the state-state policy interactions in the transmission of the shocks. The results show that including fiscal competition significantly changes the responses of economic variables to a federal shock. This suggests that when the central planner makes decisions, he has to consider the local governments’ reactions, because it may affect the effectiveness of the policy.</p> |
