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Hassett, Kevin A.

Works: 82 works in 409 publications in 1 language and 4,741 library holdings
Genres: Conference papers and proceedings 
Roles: Author, Editor, Other, Interviewer
Classifications: HB1, 330
Publication Timeline
Publications about Kevin A Hassett
Publications by Kevin A Hassett
Most widely held works by Kevin A Hassett
Tax policy and investment by Kevin A Hassett( Book )
15 editions published between 1996 and 1999 in English and held by 279 libraries worldwide
This book studies topics relating to fundamental tax reform. The topics include, among others, the effects of taxation on household saving, the effects of reducing taxes on individuals' work effort, issues in the taxation of financial services, and international issues in consumption taxation
Transition costs of fundamental tax reform by Kevin A Hassett( Book )
4 editions published in 2001 in English and held by 243 libraries worldwide
Transition costs surround debates over fundamental tax reform. Calculations of transition costs have followed the setup pioneered by Alan Auerbach and Larry Kotlikoff. In this volume, the authors focus on the most critical transition issues from the political perspective
Inequality and tax policy ( Book )
6 editions published in 2001 in English and held by 206 libraries worldwide
Rethinking competitiveness ( Book )
6 editions published in 2012 in English and held by 134 libraries worldwide
"As the 2012 election season has demonstrated, few politicians can make a speech concerning economic policy without using the term "competitiveness." Yet, despite its frequent and casual use, there is little if any agreement on its meaning. Academics have been slow to embrace the term, holding a healthy skepticism toward such political utterances. The American Enterprise Institute (AEI) brought together experts from a variety of fields to discuss the issue of competitiveness and how it may influence their disciplines. This volume is composed of the nine papers that were presented at three conferences attempting to answer the question: if "competitiveness" were to have a rigorous and relevant meaning in your field, what might that be? The volume begins with a chapter outlining the arguments surrounding competitiveness and a discussion of the Tiebout model along with its application to the international stage. From there, the chapters address the subjects of competitive tax policy, education policy, immigration, innovation, health care, international trade, and measuring international competitiveness. The conclusions these papers reach enrich the debate on what competitiveness is and how policymakers should strive to support it."--Page 4 of cover
Bubbleology : the new science of stock market winners and losers by Kevin A Hassett( Book )
12 editions published in 2002 in English and held by 131 libraries worldwide
There are only two types of stocks: those safe from bubbles and those that are not. This is a fact of investing many discovered as they saw their fabulous gains whittled away by the extreme calamity of the Internet sector. But what about the future' Is there a way for investors to capture the enormous potential for profit that exists at the frontier of the economy, the place where innovation and genius operate, without placing their fortunes in jeopardy' Is there a way to evaluate price increases'and declines'and identify whether they are happening for good or bad reasons' Bubbleology makes it possible to separate the winners from the losers. It is a brilliant, practical, and original analysis of the stock market that bashes the conventional wisdom about bubbles, showing that such famous examples as Tulipomania were not, in fact, bubbles at all. Bubbleology shows that the traditional way of evaluating risk'equating it with volatility'is inherently flawed and incomplete. If a stock fluctuates a lot in price it is regarded as risky. If the price is stable, then it is not. What this simplistic way of thinking leaves out is the simple fact that companies trying something completely new that may fundamentally alter the economic landscape are operating at the frontier. The stock of such a company swims in a sea of ambiguity, its circumstances uncertain, since there is little to provide guidance about the future. But when nobody knows for sure what will happen, pundits tell us again about Tulipomania, the South Seas Bubble, and now the debacle of the Internet to scare investors away from potentially enormous profits. To realize those profits, however, investors have to understand the role that uncertainty and ambiguity'the absence of reliable information about future events'play in the modern stock market. Those who equate ambiguity with bubbles will miss the great opportunities of the future. Bubbleology provides a new way to observe what is really going on in the market, enabling you to understand whether a stock or a sector is suspicious'whether it is in a bubble and therefore something to be avoided. Finding bubbles requires knowing where to look and what to look for. Bubbleology will help you avoid both streaming into speculative manias and shying away from perfectly good business opportunities. It tells you why you need to avoid both pontificating pundits and overconfident stock analysts. With this unique and forward-thinking book, you can inspect suspicious stocks, accurately discern risk, and diagnose a blossoming bubble before it vanishes along with your money. From the Hardcover edition
The magic mountain : a guide to defining and using a budget surplus by Kevin A Hassett( Book )
9 editions published in 1999 in English and held by 115 libraries worldwide
Inflation and the user cost of capital : does inflation still matter? by Darrel Cohen( Book )
15 editions published between 1997 and 1999 in English and held by 92 libraries worldwide
In the late 1970s, many economists argued that the deleterious effects of inflation on the user cost of capital for U.S. firms were large. Since that time, the tax code has changed, the level of inflation has dropped significantly, and the of investment has evolved considerably. In this paper, we demonstrate that the net effect of these changes has--under reasonable assumptions--not relegated inflation to the sidelines. Indeed, we conclude that: (1) inflation, even at its relatively low current rates, continues to increase the user cost of capital significantly; (2) the marginal gain in investment in response to a percentage-point reduction in inflation is larger for lower levels of inflation; (3) the beneficial effects for steady-state consumption of lowering inflation even further than has been achieved to date would likely be significant; and (4) inflation has only a small impact on intratemporal distortion in the allocation of capital within the domestic business sector. We also show that the magnitude of the inflation effect on the user cost of capital is likely much smaller in open economies
Uncertainty and the design of long-run fiscal policy by Alan J Auerbach( Book )
12 editions published in 1999 in English and held by 80 libraries worldwide
This paper explores optimal fiscal policy in an overlapping-generations general-equilibrium model under uncertainty and the impact on optimal policy of the introduction of a type of policy stickiness intended to account for the stylized fact that major reforms happen infrequently. In general, our analysis suggests not only that action should not be delayed, but further that action should actually be accelerated. The added realism of restrictions on the frequency of policy changes alters this result in two ways. The prospect of being unable to set policy in the future occasions even more precautionary saving today, if the government acts. However, the government may also choose not to set policy, and its inaction range is very asymmetric. Because the impact of its policies on the current elderly cannot be reversed in the future, the government is much more likely to choose inaction when fiscal tightening is called for. Thus, the optimal policy response over time might best be characterized by great caution in general, but punctuated by occasional periods of apparent irresponsibility
A new measure of horizontal equity by Alan J Auerbach( Book )
11 editions published in 1999 in English and held by 79 libraries worldwide
In this paper, we propose a new measure of horizontal equity that overcomes many of the shortcomings of previous proposed measures. Our starting point is the observation that a well-behaved social welfare function need not evaluate global' (vertical equity) differences in after-tax income using the same weights it applies to local' (horizontal equity) differences, even though this constraint has been applied in the past. Following work on the structure of individual preferences, we show that a social welfare function can imply different preferences toward horizontal and vertical equity. Adopting the general approach to the measurement of inequality developed by Atkinson (1970), we use such a social welfare function to derive measures of inequality that are decomposable into components naturally interpreted as indices of horizontal and vertical equity. In particular, the former index measures deviations from the fundamental principle that equals be treated equally. Finally, we apply our new measure to two tax-return data sets, evaluating the degree to which the horizontal equity of the US personal income tax has changed over time, and how horizontal equity would be altered by one version of recent proposals to do away with the so-called marriage penalty.'
Are investment incentives blunted by changes in prices of capital goods? by Kevin A Hassett( Book )
12 editions published between 1998 and 1999 in English and held by 78 libraries worldwide
Recent research on business investment decisions suggests that real investment in plant and equipment is quite sensitive to changes in the user cost of capital, pointing to the possibility that long-run changes in tax policy may have a significant impact on an economy's capital stock. Indeed, many countries have at times adopted investment tax incentives to stimulate investment. The prevalence of investment incentives suggests that local policymakers believe that incentives are effective in increasing investment at a reasonable cost in terms of lost revenue for a given increment to investment. In this paper, we explore this issue by estimating the extent to which countries are price-takers in the world market for capital goods. We find that most countries -- even the United States -- likely currently face a highly elastic supply of capital goods, suggesting that the effect of investment incentives on the price of investment goods is small. Hence efforts of long-run changes in investment tax policy are likely to materialize in real investment rather than simply being dissipated in changes in capital-goods prices
Tax reforms and investment : a cross-country comparison by Jason G Cummins( Book )
15 editions published between 1995 and 1996 in English and held by 78 libraries worldwide
We use firm-level panel data to explore the extent to which fixed investment responds to tax reforms in 14 OECD countries. Previous studies have often found that investment does not respond to changes in the marginal cost of investment. We identify some of the factors responsible for this finding and employ an estimation procedure that sidesteps the most important of them. In so doing, we find evidence of statistically and economically significant investment responses to tax changes in 12 of the 14 countries
Measuring the energy savings from home improvement investments : evidence from monthly billing data by Gilbert E Metcalf( Book )
14 editions published between 1997 and 1998 in English and held by 78 libraries worldwide
Abstract: An important factor driving energy policy over the past two decades has been the Energy Paradox, ' the perception that consumers apply unreasonably high hurdle rates to energy saving investments. We explore one possible explanation for this apparent puzzle: that realized returns fall short of the returns promised by engineers and product manufacturers. Using a unique data set, we find that the realized return to attic insulation is statistically significant, but the median estimate (12.3 percent) is close to a discount rate for this investment implied by a CAPM analysis. We conclude that the case for the Energy Paradox is weaker than has previously been believed
Investment with uncertain tax policy : does random tax policy discourage investment? by Kevin A Hassett( Book )
12 editions published in 1994 in English and held by 75 libraries worldwide
Abstract: In models with irreversible investment, increasing uncertainty about prices has been shown to increase the required rate of return (hurdle rate) and delay investment (e.g., Pindyck, 1988). One serious form of uncertainty faced by firms, a form that policy makers could conceivably control, is tax uncertainty. In this paper, we show that it does not follow from past work that tax policy uncertainty increases the expected hurdle price ratio and delays investment. This is because tax uncertainty has an unusual form that distinguishes it from price uncertainty: tax rates tend to remain constant for many years, and then change in large jumps. When tax policy follows a jump process, firms' expectations of the likelihood of the jump occurring have important effects on investment. Indeed, as we show below, while price uncertainty increases the hurdle rate and slows down investment, tax uncertainty has the opposite effect
Taxation and corporate investment : the impact of the 1991 Swedish tax reform by Alan J Auerbach( Book )
16 editions published between 1995 and 1996 in English and held by 72 libraries worldwide
In 1990, the government of Sweden introduced a major tax reform to take effect in 1991. The Swedish system prior to the legislation was so complex that the size and magnitude of the likely effects of the reform on incentives to invest were unknown. In this paper, we draw on ödersten (1989) and Auerbach and Hassett (1992) and derive an expression for the user cost of capital that captures the essential features of the Swedish tax code both before and after the reform. We estimate the model for investment in equipment and find that the responsiveness of Swedish firms to the user cost is quite similar to that found for the U.S. Finally, we employ our model and estimates to assess the effects of the 1991 reform. We find that the impact of the reform on investment is likely to have been minor and had little to do with the contemporaneous sharp drop in investment
On the marginal source of investment funds by Alan J Auerbach( Book )
14 editions published in 2000 in English and held by 72 libraries worldwide
Under the new view' of dividend taxation developed in Auerbach (1979), Bradford (1981) and King (1977) the marginal source of finance for new investment projects is retained earnings. In this case, the tax advantage of retentions precisely offsets the double taxation of subsequent dividends: taxes on dividends have no impact on the investment incentives of firms using retentions as a marginal source of funds and paying dividends with residual cash flows. We find evidence that dividends do respond to investment and cash flow for the nonfinancial corporate sector as a whole in a manner consistent with the new view. We also find that this dividend pattern is weaker for firms with better access to capital markets, as measured by bond rating and the number of analysts following them. Finally, we find that, although new share issues and repurchases respond to the same firm characteristics as dividends do, the pattern of these responses is consistent with a broader interpretation of the new view that preserves the main result of dividend-tax irrelevance with respect to the cost of capital
Accounting standards, information flow, and firm investment behavior by Jason G Cummins( Book )
11 editions published in 1994 in English and held by 69 libraries worldwide
We present a description of two different accounting regimes that govern reporting practice in most developed countries. 'One-book' countries, e.g. Germany, use their tax books as the basis for financial reporting and 'two-book' countries, e.g. the United States, keep the books largely separate. We derive a structural model and formalize a testable implication of our discussion: firms in one-book countries may be reluctant to claim some tax benefits if reductions in taxable income may be misinterpreted by financial market participants as signals of lower profitability. Econometric estimates suggest that accounting regime differences play an important role in describing domestic investment patterns both within and across countries
Reassessing the social returns to equipment investment by Alan J Auerbach( Book )
12 editions published between 1992 and 1993 in English and held by 62 libraries worldwide
The recent literature on the sources of economic growth has challenged the traditional growth accounting of the Solow model, which assigned a relatively limited role to capital deepening. As part of this literature, De Long and Summers have argued in two papers that the link between equipment investment and economic growth across countries is stronger than can be generated by the Solow model. Accordingly, they conclude that such investment yields important external benefits. However, their analysis suffers from two shortcomings. First, De Long and Summers have not conducted any formal statistical tests of the Solow model. Second, even their informal rejection of the model fails to survive reasonable tests of robustness. We formally test the predictions of the Solow model using De Long and Summers' data. Our results cast doubt on the existence of externalities to equipment investment. In particular, we find that the empirical link between investment and growth in the OECD countries is fully consistent with the Solow model. Moreover, for De Long and Summers' full sample, the evidence of excess returns to equipment investment is tenuous
Optimal long-run fiscal policy : constraints, preferences and the resolution of uncertainty by Alan J Auerbach( Book )
11 editions published in 2002 in English and held by 62 libraries worldwide
We construct a computational dynamic stochastic overlapping generations general equilibrium model with uncertain lifetimes and explore the impact of policy stickiness (specifically, a major reform will preclude future reforms for a generation) on optimal long-run fiscal policy. Under such circumstances, entitlement reforms exhaust a valuable option to move in the future. We explore the conditions under which the gain to waiting is large enough to induce optimizing policymakers to delay reforming a suboptimal system. We also allow for the uncertainty to have ARCH characteristics and explore the impact of time-varying uncertainty on the optimality of delayed policy action
The 2003 dividend tax cuts and the value of the firm : an event study by Alan J Auerbach( Book )
10 editions published in 2005 in English and held by 39 libraries worldwide
"The "Jobs and Growth Tax Relief Act of 2003" (JGTRA03) contained a number of significant tax provisions, but the most noteworthy may have been the reduction in dividend tax rates. The political debate over the dividend tax reductions of 2003 took a number of surprising twists and turns. Accordingly, it is likely that the views of market participants concerning the probability of significant dividend tax reduction fluctuated significantly during 2003. In this paper, we use this fact to estimate the effects of dividend tax policy on firm value. We find that firms with higher dividend yields benefited more than other dividend paying firms, a result that, in itself, is consistent with both new and traditional views of dividend taxation. But further evidence points toward the new view and away from the traditional view. We also find that non-dividend-paying firms experienced larger abnormal returns than other firms as the result of the dividend tax cut, and that a similar bonus accrued to firms likely to issue new shares, two results that may appear surprising at first but are consistent with the theory developed in the paper"--National Bureau of Economic Research web site
Dow 36,000 : the new strategy for profiting from the coming rise in the stock market by James K Glassman( Book )
6 editions published between 1999 and 2000 in English and held by 38 libraries worldwide
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Alternative Names
Hassett, K.
Hassett, Kevin
Hassett, Kevin Alan
Kevin Hassett economista estadounidense
English (225)
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