Economics, Econometrics and Finance
4 years ago

Tax cuts effective in combating economic downturns, study finds.

RePEc: Research Papers in Economics
Fiscal multipliers in bad times: does the nature of a recession matter?
Nicolas da Silva Borsoi, Vladimir Kühl Teles

Paper Summary

The study looked at how different types of economic downturns affect the effectiveness of government spending. They found that tax cuts can help boost the economy during tough times, whether it's due to low demand or supply issues.

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