The Economic Consequences of Major Tax Cuts for the Rich

[RandomGuy]

Spoiler alert: they hoard wealth, and it doesn't help the economy.


David Hope, Julian Limberg
Working Paper 55
December 2020

PDF paper for those interested.

http://eprints.lse.ac.uk/107919/1/Hope_economic_consequences_of_major_tax_cuts_publi shed.pdf

[RandomGuy]

Our empirical identification strategy relies on our binary variable for major tax cuts for the
rich, which permits us to apply a nonparametric generalization of the difference-in-differences
indicator for panel data analysis (Imai et al., 2020). The technique uses Mahalanobis
matching to compare treated and untreated units that have similar treatment histories and
pre-treatment covariate trajectories.

uh, whut?

looks like definitely not casual reading.