The Dynamic Effects of Personal and Corporate Income Tax Changes in the United States: Reply to Jentsch and Lunsford

Mertens, Karel; Ravn, Morten O.

doi:10.24149/wp1805r1

Working Paper

The Dynamic Effects of Personal and Corporate Income Tax Changes in the United States: Reply to Jentsch and Lunsford

Abstract: In this reply to a comment by Jentsch and Lunsford, we show that, when focusing on the relevant impulse responses, the evidence for economic and statistically significant macroeconomic effects of tax changes in Mertens and Ravn (2013) remains present for a range of asymptotically valid inference methods.

Keywords: Fiscal Policy; structural vector autoregressions; tax shocks;

JEL Classification: C32; E62; H24; H25; H31; H32;

https://doi.org/10.24149/wp1805r1