TY  - JOUR
AU  - Mankiw,N. Gregory
AU  - Summers,Lawrence H.
TI  - Are Tax Cuts Really Expansionary?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1443
PY  - 1987
Y2  - 1987
UR  - http://www.nber.org/papers/w1443
L1  - http://www.nber.org/papers/w1443.pdf
N1  - Author contact info:
N. Gregory Mankiw
Department of Economics
Littauer 223
Harvard University
Cambridge, MA  02138
Tel: 617/495-4301
Fax: 617/495-7730
E-Mail: ngmankiw@fas.harvard.edu

Lawrence H. Summers
Harvard Kennedy School of Government
79 JFK Street
Cambridge, MA 02138
Tel: 617/495-9322
Fax: 617/495-0436
E-Mail: lhs@harvard.edu
AB  - In this paper, we re-examine the standard analysis of the short-run effect of a personal tax cut. If consumer spending generates more money demand than other components of GNP, then tax cuts may, by increasing the demand for money, depress aggregate demand. We examine a variety of evidence and conclude that the necessary condition for contractionary tax cuts is probably satisfied for the U.S. economy.
ER  -