Cloyne, James S (2012): Discretionary tax shocks in the United Kingdom 1945-2009: a narrative account and dataset.
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This paper constructs a narrative account of all legislated discretionary policy changes in the United Kingdom from 1945 to 2009. Following Romer and Romer (2009, 2010), evidence of the policymakers’ motivation is presented from U.K. official Budget documents together with technical notes, press releases, Acts of Parliament, the Budget speech by the Chancellor of the Exchequer and related entries in the parliamentary record (Hansard). The historical context in which the decision was made is also discussed. Using the given motives I isolate tax policy changes which were not responding to, or influenced by, current or prospective economic shocks. This ‘exogenous’ category is comprised of actions to improve long-run economic performance, those motivated by ideological or political reasons, rulings from external bodies such as courts, and fiscal consolidation measures based on long-run considerations. By contrast, the ‘endogenous’ changes are actions to manage demand, to stimulate production, to offset a debt crisis and those to fund spending decisions. For all the tax changes I collect information on the announcement, implementation and withdrawal dates as well as the type of the tax (such as income tax). The dataset contains nearly 2,500 tax changes and is aggregated into a quarterly series for analysis. In addition to creating a novel dataset this paper also contributes to the post-war history of U.K. taxation.
|Item Type:||MPRA Paper|
|Original Title:||Discretionary tax shocks in the United Kingdom 1945-2009: a narrative account and dataset|
|Keywords:||fiscal policy, tax shocks, tax multiplier, narrative approach, business cycles, tax data, economic history|
|Subjects:||E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook > E62 - Fiscal Policy
N - Economic History > N1 - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations > N10 - General, International, or Comparative
E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H20 - General
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E20 - General
|Depositing User:||James Cloyne|
|Date Deposited:||31. Mar 2012 22:29|
|Last Modified:||12. Feb 2013 08:07|
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Discretionary tax shocks in the United Kingdom 1945-2009: a narrative account and dataset. (deposited 21. Nov 2011 15:58)
Discretionary tax shocks in the United Kingdom 1945-2009: a narrative account and dataset. (deposited 29. Mar 2012 15:31)
- Discretionary tax shocks in the United Kingdom 1945-2009: a narrative account and dataset. (deposited 31. Mar 2012 22:29) [Currently Displayed]
- Discretionary tax shocks in the United Kingdom 1945-2009: a narrative account and dataset. (deposited 29. Mar 2012 15:31)