Tax policy changes may overstate efficiency gains by $5 billion.
The study looks at how tax policy changes affect the economy by considering industry-specific capital that can't easily move. By using a new model, the researchers found that previous estimates of efficiency gains from tax changes in the U.S. were too high by $5 billion. This means that the impact of integrating personal and corporate taxes may not be as big as previously thought. The model also helps understand how these changes affect people who own a lot of capital in certain industries.