When Estimated Economic Effects Fail the Sniff Test: Tax Examples

B-Tier
Journal: National Tax Journal
Year: 2023
Volume: 76
Issue: 3
Pages: 621 - 645

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The gold standard for informing policy makers is when theory, model results, and observations tell a similar story. Some estimated economic effects influence policy but are not reasonable. This paper discusses several tax examples where estimates based on one tool of inquiry are inconsistent with the findings of others. Examples discussed are the luxury-boat tax, the capital gains realization response, the corporate income tax, and the life-cycle model. The common thread in all is that when economists bring all their tools to bear, the results fail the sniff test.

Technical Details

RePEc Handle
repec:ucp:nattax:doi:10.1086/725855
Journal Field
Public
Author Count
1
Added to Database
2026-01-25