NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Effects of Tax Shocks on Output: Not So Large, But Not Small Either

Roberto Perotti

NBER Working Paper No. 16786
Issued in February 2011

---- Acknowledgements -----

I thank Roger Gordon and a referee for very helpful suggestions; Carlo Favero for several discussions that helped clarify the issues, and for pointing out a crucial mistake in an earlier version of the paper; Yuriy Gorodnichenko, who discussed an earlier version at the NBER-IGIER TAPES conference held in Varenna, Italy in June 2010; and Morten Ravn for very useful comments. Elia Pietro Boe provided excellent research assistance. This paper was produced as part of the project Growth and Sustainability Policies for Europe (GRASP), a Collaborative Project funded by the European Commission's Seventh Research Framework Programme, contract number 244725. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.

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