Liquidity Constraints, Fiscal Policy, and Consumption

Kenneth L. Judd and

KLJ

Kenneth L. Judd Northwestern University

R. Glenn Hubbard

R. Glenn Hubbard Dean Emeritus and Russell L. Carson Professor of Finance and Economics - Columbia Business School

Discussants: Lawrence H. Summers and

Lawrence H. Summers Charles W. Eliot University Professor and President Emeritus - Harvard University

Robert E. Hall

Robert E. Hall Robert and Carole McNeil Joint Hoover Senior Fellow and Professor of Economics - Stanford University

TAX POLICY AND TAX REFORM are important items on the current policy
agenda. In evaluating alternative tax policies, decisionmakers must
consider both their normative and positive impact; in particular, they
must examine the effects of competing policies on the overall well-being
of the taxpayers and on various indexes of economic activity, in both
the short run and long run.