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Journal of Undergraduate Research

Keywords

tax increases, net exports, economic models, maximize profits

College

Family, Home, and Social Sciences

Department

Economics

Abstract

The purpose of this research is to verify the implications of common economic models which predict that increases in taxation will lead to increases in net exports. I find that tax increases have a positive impact on net exports, but that the estimated impact is likely unreliable due to imperfect estimation methods and the simplicity of the model. The initial attempt revealed several difficulties some of which could be overcome and others requiring further research. This report will explain my model, how the data for the estimation was obtained, the process of estimation, and my conclusions.

Included in

Economics Commons

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