Working Paper: NBER ID: w1792
Authors: Martin Feldstein
Abstract: This paper, prepared for the annual meetings of the American Economic Association, examines the claims that were made at the beginning of the decade by the "new" supply-siders and contrasts their views with the traditional supply-side economics that has been a prominent part of economics since Adam Smith. The analysis gives particular attention to the pace of recovery and growth and to the revenue effects of the 1981 tax cut.
Keywords: Supply-side economics; Tax cuts; Economic growth; Inflation
JEL Codes: E62; H20
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Tax cuts (H29) | Increased real incomes (E25) |
| Tax cuts (H29) | Higher standard of living (I31) |
| Tax cuts (H29) | Increased tax revenue (H29) |
| Tax cuts (H29) | Increased real GNP (E20) |
| Government policies affecting labor supply (J48) | Economic outcomes (F69) |
| Monetary policy influences economic recovery (E52) | Economic outcomes (F69) |