Labs of Democracy: Using Regional Variation to Understand Fiscal Policy Issues: Dissertation Summary

Authors

Owen Zidar, University of California, Berkeley

Award Type

First Prize, Co-winner

Dissertation Advisor

Alan Auerbach

Abstract

This dissertation uses a regional approach to assess the aggregate effects of cutting taxes on corporations and on taxpayers in different income groups. Determining the optimal course for economic policy critically depends on the efficiency and equity consequences of these policies. The first chapter estimates the incidence of state corporate taxes on workers, landowners, and firm owners in a spatial equilibrium model in which corporate taxes affect the location choices of both firms and workers. The second chapter investigates how tax changes for different income groups affect macroeconomic activity.

Link to dissertation full text