1. Rosen
Professor Harvey Rosen of Princeton university maintains the dynamic effects are sufficient to make the Romney plan viable.The crucial step in his analysis is to estimate the boost to GDP the Romney plan would produce using an economic growth model - and then to derive the revenue impact.
The excerpt from his paper cited below outlines his methodology for deriving the the macro-dynamic effects he says are missing from the TPC analysis (he also looks at the same micro-dynamic issues that the TPC does include - but his main argument concerns macro-effects).

He calculates the effect on revenue of assuming a 3, 5 and 7 GDP effect over a decade - but concludes that 3 percent is the most reasonable figure. To justify this he relies on a paper by John Diamond of Rice University which sets out the results of simulations of the Romney tax plan using a widely used general equilibrium growth model. This model produces a 5 percent estimate which Rosen adjusts down since it assumes that all the Bush tax cuts expire, which Rosen thinks leads to an inflated GDP impact.

Since Rosen's analysis depends crucially on the Diamond study it is added as a supportive node to this one - as are other studies that claim a significant macro-dynamic growth effect.
Λεπτομέρειες πλοηγού
(Βοήθεια)
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Visualizing the Romney Tax Debate »Visualizing the Romney Tax Debate
Romney's plan stated »Romney's plan stated
But does it compute? »But does it compute?
No - it does not compute »No - it does not compute
The TPC case »The TPC case
Growth effect claim »Growth effect claim
Ignores growth potential »Ignores growth potential
Growth-supportive studies »Growth-supportive studies
1. Rosen
Growth estimate 1 - Diamond study »Growth estimate 1 - Diamond study
Growth estimate 2 - Romney Quartet »Growth estimate 2 - Romney Quartet
Non-growth objections »Non-growth objections
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