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- W1996639169 abstract "Abstract From 1981 iv to 1983 ii , the growth rate of the income velocity of money declined sharoly. Almost all forecasts of this rate based on standard models overpredicted the velocity growth rate over this period. In this paper it is argued that income taxes exert a direct and discernible influence on velocity of money which has not been recognized by these models. As a result, most models failed to capture the 1981–1983 Reagan tax cuts and, consequently, overpredicted the velocity growth rate in this period. It is shown that the tax-velocity hypothesis is supported by the results of an empirical test. It is also shown that the inclusion of taxes in a model of velocity helps alleviate the overprediction of the velocity growth rate in the 1981–1983 period." @default.
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- W1996639169 date "1985-09-01" @default.
- W1996639169 modified "2023-09-27" @default.
- W1996639169 title "Income taxes and the income velocity of money: An empirical analysis" @default.
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- W1996639169 doi "https://doi.org/10.1016/0164-0704(85)90040-0" @default.
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