The revenue smoothing hypothesis in an ARIMA Framework: Evidence from the United States, in Claude Diebolt, Catherine Kyrtsou et al. (eds.), New Trends in Macroeconomics

摘要

This paper tests Mankiw’s (1987) revenue-smoothing hypothesis,that the inflation rate moves one-for-one with the marginal tax ratein the long run, using the new average marginal tax rate series constructedby Stephenson (1998) and the long-horizon regression approachdeveloped by Fisher and Seater (1993). It reports considerableevidence against revenue-smoothing.