Macroeconomy

Many public policies have noticeable effects across the entire economy. These papers describe those policies and trace how they shape and reshape the way we live our economic lives.

HIGHLIGHTS

The Economic Impact of a 25 Percent Corporate Income Tax Rate
One way to spur private sector investment in the U.S. and get it into the hands of entrepreneurs would be to reduce the federal statutory corporate income tax rate, which is currently 35 percent. Read More.
Obama Tax Hikes: The Economic and Fiscal Effects
President Obama has advanced a plan that reverses the long-standing successful policy: The President and his supporters are calling for tax increases, primarily on upper-income taxpayers and businesses. Read More.
What Boxer-Kerry Will Cost the Economy
Barbara Boxer and John Kerry are pushing their cap-and-trade legislation in the Senate. This legislation would place an enormous burden on American families by raising gasoline prices, heating costs, energy taxes, and unemployment. Read More.

Our Research & Offerings on Macroeconomy

Lecture posted January 31, 2012 by William Beach Where Are the Entrepreneurs? Why Their Absence in Macroeconomic Models Means Policymakers Are Getting Bad Advice
Abstract: Robert Lucas’s famous critique of macro modeling focused the attention of modelers on what he called adaptive expectations: What’s happening “now” in a model’s data space is more important than what’s happened in the past. Lucas made…
Testimony posted October 6, 2011 by William Beach It is Time to Include Dynamic Economic Analysis in the Process of Changing Tax Policy
Testimony before Committee on Ways and Means United States House of Representatives September 21, 2011 …
WebMemo posted September 8, 2011 by James Sherk Extended UI Payments Do Not Benefit the Economy
There is no such thing as a free lunch. Congress wants to help the unemployed, but extending the duration of unemployment insurance (UI) benefits slightly harms the economy. Raising benefits to 99 weeks has increased the unemployment rate by 0.5 to 1.5 percentage points.[1] …
First Principles Series Report posted February 1, 2011 by Bruce Caldwell Ten (Mostly) Hayekian Insights for Trying Economic Times
Abstract: The economist Friedrich Hayek attempted in his writings to spotlight the interlocking set of ideas—constructivist rationalism, scientism, socialism, “the engineering mentality”—that was leading the West down what he famously called the road to serfdom and to propose in its place a return to…
WebMemo posted December 2, 2010 by Karen Campbell, Ph.D., John Ligon The Economic Impact of a 25 Percent Corporate Income Tax Rate
One way to spur private sector investment in the U.S. and get it into the hands of entrepreneurs would be to reduce the federal statutory corporate income tax rate, which is currently 35 percent. The Heritage Foundation’s Center for Data Analysis (CDA) conducted a dynamic simulation of…
Backgrounder posted November 15, 2010 by Guinevere Nell, Karen Campbell, Ph.D. Obama’s Tax Hikes on High-Income Earners Will Hurt the Poor—and Everyone Else
Abstract: Those who think they are safe from the looming Obama tax hikes because they are not “rich” are in for a rude awakening if the Obama tax plan goes into effect. Economic growth affects everyone—whether directly or indirectly. All people’s microeconomic decisions contribute…
WebMemo posted September 20, 2010 by William Beach, John Ligon Obama Tax Hikes: Economic Harm to All Americans
The end of the August recess brought with it the beginning of a historic tax debate. Congress soon will decide whether to extend tax relief passed in 2001 and 2003 to all income-earning groups or to only some. In the course of making that decision, Congress may set the fate…
Center for Data Analysis Report posted September 20, 2010 by William Beach, Rea Hederman, Jr., John Ligon, Guinevere Nell, Karen Campbell, Ph.D. Obama Tax Hikes: The Economic and Fiscal Effects
Abstract: Since 1996, Congress after Congress has voted to lighten the tax burden on Americans. The current Congress will decide this fall whether to continue this policy or to significantly raise personal income taxes. President Obama has advanced a plan that reverses the long-standing…
Center for Data Analysis Report posted August 19, 2010 by Karen Campbell, Ph.D., Guinevere Nell The Economic Freedom Act: Economic and Fiscal Effects
Abstract: The Economic Freedom Act, proposed by Representative Jim Jordan, would terminate the ineffective Troubled Assets Relief Program (TARP), and substitute a proven way to stimulate the economy: tax relief—from permanent repeal of the capital gains and death taxes to significant reductions in payroll…
Center for Data Analysis Report posted May 5, 2010 by David W. Kreutzer, Ph.D., Karen Campbell, Ph.D., William Beach, Ben Lieberman, Nicolas Loris A Renewable Electricity Standard: What It Will Really Cost Americans
Abstract: Renewable energy—harnessing the power of the wind and the sun—sounds wonderful until confronted with the facts. While wind and sun are indeed free, turning their energy into consumer-accessible electricity is not. Nor is it easy. Wind power must be used at the moment…

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Center for Data Analysis Report posted September 20, 2010 by William Beach, Rea Hederman, Jr., John Ligon, Guinevere Nell, Karen Campbell, Ph.D. Obama Tax Hikes: The Economic and Fiscal Effects
Abstract: Since 1996, Congress after Congress has voted to lighten the tax burden on Americans. The current Congress will decide this fall whether to continue this policy or to significantly raise personal income taxes. President Obama has advanced a plan that reverses the long-standing…
WebMemo posted May 13, 2009 by William Beach, Karen Campbell, Ph.D., David W. Kreutzer, Ph.D., Ben Lieberman The Economic Impact of Waxman-Markey
The policy analysis reported in this paper refers to a version of Waxman-Markey that was heavily revised in committee hearings. For analysis that reflects the post-committee version of Waxman-Markey, readers should refer to Heritage Foundation WebMemo, No. 2450 "Son of Waxman-Markey: More Politics for a More Costly Bill." Representatives Henry Waxman (D-CA)…
WebMemo posted September 8, 2011 by James Sherk Extended UI Payments Do Not Benefit the Economy
There is no such thing as a free lunch. Congress wants to help the unemployed, but extending the duration of unemployment insurance (UI) benefits slightly harms the economy. Raising benefits to 99 weeks has increased the unemployment rate by 0.5 to 1.5 percentage points.[1] …
Center for Data Analysis Report posted May 5, 2010 by David W. Kreutzer, Ph.D., Karen Campbell, Ph.D., William Beach, Ben Lieberman, Nicolas Loris A Renewable Electricity Standard: What It Will Really Cost Americans
Abstract: Renewable energy—harnessing the power of the wind and the sun—sounds wonderful until confronted with the facts. While wind and sun are indeed free, turning their energy into consumer-accessible electricity is not. Nor is it easy. Wind power must be used at the moment…
Backgrounder posted December 7, 2006 by Tracy Foertsch, Ph.D. Dynamic Analysis at Treasury: What Are the Next Steps?
The President's fiscal year (FY) 2007 budget submission to Congress includes a number of important initiatives. Among them is a plan to create a Dynamic Analysis Division within the Office of Tax Analysis (OTA) in the U.S. Department of the Treasury. Dynamic analysis gauges the impact on federal tax revenues of the changes in output…
WebMemo posted February 25, 2010 by Karen Campbell, Ph.D., Guinevere Nell The President’s Health Proposal: Taxing Investments Undermines Economic Recovery
The new White House proposal to impose a Medicare tax on investment income would reduce demand for investment, which is the last thing that the economy needs right now. It would slow recovery, reduce employment opportunities, and hinder wage growth. A dynamic macroeconomic analysis helps one see…
Backgrounder posted November 15, 2010 by Guinevere Nell, Karen Campbell, Ph.D. Obama’s Tax Hikes on High-Income Earners Will Hurt the Poor—and Everyone Else
Abstract: Those who think they are safe from the looming Obama tax hikes because they are not “rich” are in for a rude awakening if the Obama tax plan goes into effect. Economic growth affects everyone—whether directly or indirectly. All people’s microeconomic decisions contribute…
Lecture posted January 31, 2012 by William Beach Where Are the Entrepreneurs? Why Their Absence in Macroeconomic Models Means Policymakers Are Getting Bad Advice
Abstract: Robert Lucas’s famous critique of macro modeling focused the attention of modelers on what he called adaptive expectations: What’s happening “now” in a model’s data space is more important than what’s happened in the past. Lucas made…
Testimony posted October 6, 2011 by William Beach It is Time to Include Dynamic Economic Analysis in the Process of Changing Tax Policy
Testimony before Committee on Ways and Means United States House of Representatives September 21, 2011 …
First Principles Series Report posted February 1, 2011 by Bruce Caldwell Ten (Mostly) Hayekian Insights for Trying Economic Times
Abstract: The economist Friedrich Hayek attempted in his writings to spotlight the interlocking set of ideas—constructivist rationalism, scientism, socialism, “the engineering mentality”—that was leading the West down what he famously called the road to serfdom and to propose in its place a return to…

Find more work on Macroeconomy

WebMemo posted September 8, 2011 by James Sherk Extended UI Payments Do Not Benefit the Economy
There is no such thing as a free lunch. Congress wants to help the unemployed, but extending the duration of unemployment insurance (UI) benefits slightly harms the economy. Raising benefits to 99 weeks has increased the unemployment rate by 0.5 to 1.5 percentage points.[1] …
First Principles Series Report posted February 1, 2011 by Bruce Caldwell Ten (Mostly) Hayekian Insights for Trying Economic Times
Abstract: The economist Friedrich Hayek attempted in his writings to spotlight the interlocking set of ideas—constructivist rationalism, scientism, socialism, “the engineering mentality”—that was leading the West down what he famously called the road to serfdom and to propose in its place a return to…
WebMemo posted December 2, 2010 by Karen Campbell, Ph.D., John Ligon The Economic Impact of a 25 Percent Corporate Income Tax Rate
One way to spur private sector investment in the U.S. and get it into the hands of entrepreneurs would be to reduce the federal statutory corporate income tax rate, which is currently 35 percent. The Heritage Foundation’s Center for Data Analysis (CDA) conducted a dynamic simulation of…
Backgrounder posted November 15, 2010 by Guinevere Nell, Karen Campbell, Ph.D. Obama’s Tax Hikes on High-Income Earners Will Hurt the Poor—and Everyone Else
Abstract: Those who think they are safe from the looming Obama tax hikes because they are not “rich” are in for a rude awakening if the Obama tax plan goes into effect. Economic growth affects everyone—whether directly or indirectly. All people’s microeconomic decisions contribute…
WebMemo posted September 20, 2010 by William Beach, John Ligon Obama Tax Hikes: Economic Harm to All Americans
The end of the August recess brought with it the beginning of a historic tax debate. Congress soon will decide whether to extend tax relief passed in 2001 and 2003 to all income-earning groups or to only some. In the course of making that decision, Congress may set the fate…
Center for Data Analysis Report posted September 20, 2010 by William Beach, Rea Hederman, Jr., John Ligon, Guinevere Nell, Karen Campbell, Ph.D. Obama Tax Hikes: The Economic and Fiscal Effects
Abstract: Since 1996, Congress after Congress has voted to lighten the tax burden on Americans. The current Congress will decide this fall whether to continue this policy or to significantly raise personal income taxes. President Obama has advanced a plan that reverses the long-standing…
Center for Data Analysis Report posted August 19, 2010 by Karen Campbell, Ph.D., Guinevere Nell The Economic Freedom Act: Economic and Fiscal Effects
Abstract: The Economic Freedom Act, proposed by Representative Jim Jordan, would terminate the ineffective Troubled Assets Relief Program (TARP), and substitute a proven way to stimulate the economy: tax relief—from permanent repeal of the capital gains and death taxes to significant reductions in payroll…
Center for Data Analysis Report posted May 5, 2010 by David W. Kreutzer, Ph.D., Karen Campbell, Ph.D., William Beach, Ben Lieberman, Nicolas Loris A Renewable Electricity Standard: What It Will Really Cost Americans
Abstract: Renewable energy—harnessing the power of the wind and the sun—sounds wonderful until confronted with the facts. While wind and sun are indeed free, turning their energy into consumer-accessible electricity is not. Nor is it easy. Wind power must be used at the moment…
WebMemo posted February 25, 2010 by Karen Campbell, Ph.D., Guinevere Nell The President’s Health Proposal: Taxing Investments Undermines Economic Recovery
The new White House proposal to impose a Medicare tax on investment income would reduce demand for investment, which is the last thing that the economy needs right now. It would slow recovery, reduce employment opportunities, and hinder wage growth. A dynamic macroeconomic analysis helps one see…
Backgrounder posted January 26, 2010 by David W. Kreutzer, Ph.D., Karen Campbell, Ph.D., William Beach, Ben Lieberman, Nicolas Loris What Boxer-Kerry Will Cost the Economy
Abstract: Barbara Boxer and John Kerry are pushing their climate-change legislation in the Senate. Like the Waxman-Markey bill, passed by the House last year, Boxer-Kerry is a cap-and-trade bill. Why is that bad? Because severely restricting greenhouse gas emission places an enormous burden on American families--higher gasoline prices,…

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Find more work on Macroeconomy

Testimony on October 6, 2011 It is Time to Include Dynamic Economic Analysis in the Process of Changing Tax Policy
First Principles Series Report on February 1, 2011 Ten (Mostly) Hayekian Insights for Trying Economic Times
Backgrounder on January 26, 2010 What Boxer-Kerry Will Cost the Economy

Find more work on Macroeconomy

Experts on Macroeconomy

William Beach
Director, Center for Data Analysis and Lazof Family Fellow
Curtis Dubay
Senior Policy Analyst, Tax Policy
J.D. Foster, Ph.D.
Norman B. Ture Senior Fellow in the Economics of Fiscal Policy
John Ligon
Policy Analyst
James Sherk
Senior Policy Analyst in Labor Economics