Asymmetric Effects of Exogenous Tax Changes

The Effect of Legislated Tax Changes on the Trade Balance: Empirical Evidence for the United States, Germany, and the United Kingdom

“…We extend Romer and Romer's (2009) data by more than 50 quarters and Cloyne's (2012) and Uhl's (2013) data by almost 30 quarters, so that our samples now cover the period from 1974Q4 until 2018Q2. Following Hussain and Malik (2016), we focus on permanent tax changes and thus omit temporary ones. We use the narrative account to break down the tax changes into personal income tax liabilities, corporate income tax liabilities, and German indirect tax liabilities.…”

“…Instead of employing the aggregated numbers of the full tax bill, as is done, for example, by Romer and Romer (2010) and Mertens and Ravn (2013), we follow Cloyne (2012) and Uhl (2013), who disaggregated the tax bills into their individual components. This allows us to consider asymmetric effects, as in Jones et al (2015) and Hussain and Malik (2016), as well as spill-over effects, as in Clancy (2019) and Metelli and Natoli (2019). In addition, we can study changes in different types of taxes and obtain a precise timing of the shocks, as we identify the implementation dates of every single measure.…”

Modelling Tax-Consumption Relationship: An Empirical Evidence from Asia

“…The tax might reduce the consumption of durable good as durable goods are defined as the goods those whose expected lifetime is more than three years. Meanwhile, 12/14 there are positive nexus between the tax and household consumption expenditure on non-durable goods as non-durable goods are something that can be expected to last for a substantial time period (Hussain & Malik, 2016;and Tochukwu et al, 2015). Two economics variables namely GDP per capita and savings which have incredible influence on consumption according to theory are introduced to ensure correct specification of the model.…”

“…Meanwhile, another strand of literature for instance, Miki (2011), Tochukwu et al (2015), and Hussain and Malik (2016) confirm mixed results with some literature suggest a positive nexus while others indicate an opposite nexus between the tax and consumption expenditure. In the studies by Hussain and Malik (2016) and Tochukwu et al (2015) who apply different estimation approaches where the former adopts censored regression model while the later applies OLS estimation technique arrive at similar conclusion of a positive nexus between tax and household consumption expenditure on non-durable goods and negative impact of the tax and household consumption expenditure on durable goods.…”

An Empirical Characterization of the Dynamic Effects of Police Spending on Violent and Property Crime

“…Using structural VAR models, Atems, Kapper, and Lam () show that exchange rates respond asymmetrically to shocks to the crude oil market depending on whether the shocks are demand versus supply shocks, large versus small. Among others, Cover (), Weise (), and Chen () present evidence of asymmetries in the effects of monetary policy, while Jones, Olson, and Wohar () and Hussain and Malik () find that fiscal policy shocks have asymmetric effects on output and other variables.…”