Front Matter Page
Western Hemisphere Department
Table of Contents
I. Introduction
II. Stylized Facts
A. Heterogeneity in Goods and Production
B. Heterogeneity in Consumption
III. Model
A. Production and Firms
B. Households
C. Government
D. Stationary Competitive Equilibrium
IV. Benchmark Economy
A. Preferences
B. Household’s labor productivity
C. Technology
D. Government
V. Experiments And Key Results
A. The middle-class tax cut
B. Consumption Tax and EITC Expansion
C. Tax cuts for high income groups
VI. Sensitivity Analysis
VII. Conclusions
References
Figures
1. Tradability, Labor Intensity, and Share of U.S. Final Demand for Commodities
2. Distribution of Educational Attainment, by Sector
3. Average Expenditure Share on Manufactured Goods
4. Baseline Tax Function
5. Middle Class Cut with EITC Expansion
6. Middle-Class Tax Cut Effects
7. Consumption Tax and EITC Expansion Effects
8. High Income Tax Cut
9. High Income Tax Cuts: Closed vs. Open (% change)
Tables
1. Preferences Parameters
2. Skills Parameters
3. Stochastic Productivity Parameters
Appendix I.