Budget Balance, Welfare, and the Growth Rate: "Dynamic Scoring" of the Long-Run Government Budget
研究减税或同时削减支出如何影响长期政府财政平衡，发现跨期替代弹性大于1时减税才能改善长期平衡，并分析了长期财政平衡与经济福利的关系。
This paper determines conditions under which a reduction in the role of government, either through a tax cut alone, or together with accompanying expenditure cuts, will improve long-run government fiscal balance. For a ceteris paribus cut in the income tax rate to improve long-run government balance, the intertemporal elasticity of substitution must exceed unity. A tax cut balanced by an expenditure cut is likely to improve the long-run balance even if it does not improve the short-run balance. The relationship between improving the long-run fiscal balance and economic welfare is also analyzed.