Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/284771 
Year of Publication: 
2021
Citation: 
[Journal:] Economica [ISSN:] 1468-0335 [Volume:] 89 [Issue:] 353 [Year:] 2021 [Pages:] 62-81
Publisher: 
Wiley, Hoboken, NJ
Abstract: 
This paper quantifies the dynamic macroeconomic effects of tax changes in Germany, allowing for anticipation effects of preannounced tax reforms. Identification is achieved using a narrative approach, which provides information about the timing of tax reforms. An anticipated cut in taxes has a positive effect on output with a peak multiplier of 1.7, not observed until nine quarters after implementation. This positive effect is accompanied by significant negative anticipation effects on output, consumption, investment, hours worked and wages. Our results suggest that policymakers should take anticipation effects into account when implementing fiscal policy measures.
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article
Document Version: 
Published Version

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