Growth estimate 1 - Diamond study
Based on simulations using a widely-used general equilibrium growth model, John Diamond of Rice University estimates the macro-dynamic growth impact of something like the Romney tax plan at 5.4 percent over a decade. This is used in the revenue estimates made by Rosen.
Two important objections have been raised to the Diamond study and its use by Rosen to estimate tax impacts. These objections are added as opposing nodes to this one.

It is also important to note that Diamond's use of the TPA model results in a 6% increase in the labor supply. However this leaves unanswered how this supply response will be distributed between new worker participation (the extensive margin) or increased hours of work (the intensive margin). To answer this question he relies on a separate study showing the great bulk will be increased worker participation. This analysis is added as a supportive node to this one - and is then challenged by another commentator on the ground that the simulation model and the Blundell study are incompatible.
Immediately related elementsHow this works
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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 »1. Rosen
Growth estimate 1 - Diamond study
Labor force analysis »Labor force analysis
Objections to Diamond »Objections to Diamond
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