2. Entin/McBride

Stephen Entin and William McBride use a neo-classical growth model to predict the effect of the Romney tax plan over a 5 to 10 year horizon. They predict that the increment to growth will be substantial and will reduce the tax-expenditure savings task by 60 percent, making Romney's plan viable.

This is the most recent of the tax studies cited by the Romney camp and has, thus far, attracted much less critical commentary in the media and blogosphere. It is explicit in its reliance on a neo-classical growth model - a choice that presumably could attract criticism from critics of such models, though this does not seem to have surfaced as yet. Hence criticism of the model choice has been added as a stub to this node.

Unlike the Rosen and Diamond studies this analysis is both a growth simulation and an estimation of the budgetary effects - and hence the budgetary viability - of the Romney plan. As a growth simulation, it lends additional support to Rosen's analysis (which depends on Diamond for a growth estimate) and a cross-link has been added to reflect his.
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Graph of this discussion
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