Tax Rates, Government Expenditures and Labor Supply: Clarifying the Record
用一个简单模型梳理了关于税率变化对劳动供给影响的文献，纠正了错误论断，并推导出新结果，帮助读者理解供给经济学的核心主张。
A central claim of supply-side economics is that in general equilibrium, the income effect of a change in the income tax rate washes out and only the substitution effect remains. In the words of Ehrenberg and Smith (1985): There would be a substitution effect with no overall income effect, and labor supply would increase. The aggregate supply-of-labor curve, then, must be upward sloping. [p. 160, emphasis in the original.] Although there has been a substantial literature on this subject, the literature is sometimes confused. In this paper, a simple model is used to sort through the literature, correct mistaken assertions, derive a new result and collect earlier results in a compact way.