Journal Article

Preannounced tax cuts and their potential influence on the 2001 recession


Abstract: The authors present a model in which anticipated future tax cuts, like those promised during the 2000 U.S. presidential campaign, generate a contraction in economic activity with some of the atypical features observed during the 2001 recession (such as its relatively strong consumption and home investment).

Keywords: Recessions;

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Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Economic Perspectives

Publication Date: 2009

Volume: 33

Issue: Q III