Pandemic Unemployment Benefits Provided Much-Needed Fiscal Support
Recent analysis suggests that enhanced unemployment insurance benefits implemented in response to the COVID-19 pandemic have helped buttress spending among the unemployed and supported state and local economies. Their economic impact in Texas relative to the nation has been constrained by lower levels of participation in the unemployment aid programs and more modest per-capita payments from them.
Estimating Taxable Income Responses with Elasticity Heterogeneity
We extend a standard taxable income model with its typical functional-form assumptions to account for nonlinear budget sets. We propose a new method to estimate taxable income elasticity that is more policy relevant than the typically estimated elasticity based on linearized budget sets. Using U.S. data from the NBER tax panel for 1979-1990 and differencing methods, we estimate an elasticity of 0.75 for taxable income and 0.20 for broad income. These estimates are higher than those obtained by specifications based on linearization. Our approach offers a new way to address the problem of ...
Texas twist: why did state's unemployment fall below nation's?
Symbolic of Texas’ relative economic health during the recent recession, the unemployment rate has trailed U.S. joblessness by an average 1 percentage point since January 2007.
Did home equity restrictions help keep Texas mortgages from going underwater?
With relatively stable house prices in Texas, the incidence of underwater mortgages was a fraction of what occurred in hard-hit states.
College pays dividends - more so in Texas than U.S.
Economic research confirms what parents have been telling their children for generations: College education pays off in higher earnings. Indeed, the gains from earning a college degree have been rising over the past quarter century--in both the nation and Texas. ; Supply and demand go a long way toward explaining rapid increases in the college premium since the 1980s. Texas' faster increases suggest demand growth has outpaced supply growth by a wider margin in the state than the nation.
Did Tax Cuts and Jobs Act Create Jobs and Stimulate Growth? Early Evidence Using State-Level Variation in Tax Changes
The Tax Cuts and Jobs Act (TCJA) of 2017 is the most extensive overhaul of the U.S. income tax code since the Tax Reform Act of 1986. Existing estimates of TCJA’s economic impact are based on economic projections using pre-TCJA estimates of tax effects. Following recent pioneering work of Zidar (2019), I exploit plausibly exogenous state-level variation in tax changes and find that an income tax cut equaling 1 percent of GDP led to a 1 percentage point higher nominal GDP growth and about 0.3 percentage point faster job growth in 2018.
Less involuntary part-time work suggests Texas economic strength
Fed policymakers have closely watched part-time workers as an indicator of labor market health. While the ranks of involuntary part-timers have remained persistently high since the Great Recession?suggesting remaining labor market slack?the pattern has been less notable in Texas.
Texas Top-Rated State for Firm Relocations
Texas is the leading destination for companies relocating from other states. The economic benefits of the moves may be best measured in terms of the ancillary activity generated rather than the benefits directly attributable to the relocations.
Underemployment poses long-term financial risk to more workers
The underemployed and the discouraged?those who have given up trying to find work? are additional indicators of labor dislocation.
Lifecycle consistent estimation of effect of taxes on female labor supply in the US: evidence from panel data
Very few existing studies have estimated female labor supply elasticities using a U.S. panel data set, though cross-sectional studies abound. Also, most existing studies have modeled female labor supply in the U.S. in a static framework. I make an attempt to fill the gap in this literature, by estimating a lifecycle-consistent specification with taxes, in a limited dependent variable framework, on a panel of married females from the PSID. Both parametric random effects and semiparametric fixed effects methods are applied. The estimate of compensated elasticity for females in the sample is ...