Economists respond to Summers, Furman over Mnuchin letter
The studies we cite all find that reductions in corporate taxation have important positive effects on economic growth.
Ultimately, we are confident that the estimates in our piece are closer to the mark and are at the same time broadly consistent with other estimates from empirical studies of effects of corporate tax changes on growth.
.. We state explicitly in the letter that the figure calculated on the basis of the OECD study is a long-run estimate (the OECD study estimates effects on GDP per capita, not GDP per se)... By this method, the proposed changes would raise long-run GDP per capita by approximately 1.8 percent... Robert J. Barro, Michael J. Boskin, John Cogan, Douglas Holtz-Eakin, Glenn Hubbard, Lawrence B. Lindsey, Harvey S. Rosen, George P. Shultz, John B. Taylor