NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Tax News: The Response of Household Spending
to Changes in Expected Taxes

Lorenz Kueng

NBER Working Paper No. 20437
Issued in August 2014, Revised in August 2016

---- Acknowledgments ----

I am grateful to Alan Auerbach and Yuriy Gorodnichenko for their encouragement and support throughout this project. David Card, Pierre-Olivier Gourinchas, Dwight Jaffee, Erik Hurst, Patrick Kline, Nick Li, Brian Melzer, Dina Pomeranz, Demian Pouzo, Emmanuel Saez, Adam Szeidl, Mu-Jeung Yang and seminar participants at numerous places all provided valuable feedback. I thank Daniel Feenberg for support with mapping the CEX to TAXSIM, Kevin Moore for sharing his code for the SCF, and Craig Kreisler for patiently answering all my questions about the CEX. All remaining errors are mine.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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