The paper also looks at taxation in a crisis, and has this interesting part: "For example, based on U.S. data, Romer and Romer (2010) find that, in response to

The paper also looks at taxation in a crisis, and has this interesting part: "For example, based on U.S. data, Romer and Romer (2010) find that, in response to a tax increase, GDP, investment and consumption all decline, but investment growth falls by about four times more than consumption growth does." The reference is to this paper: http://emlab.berkeley.edu/~dromer/papers/RomerandRomerAERJune2010.pdf http://emlab.berkeley.edu/~dromer/papers/RomerandRomerAERJun...