Nathaniel Hendren Profile picture
Professor of Economics at MIT. Co-Director of Policy Impacts (https://t.co/57eyCxxbj4) and Opportunity Insights. Co-Lead Editor of the JPUBEC (He/him/his)
Jul 18 12 tweets 3 min read
🚨*New Paper Alert*🚨

What are the most effective ways to fight climate change? What are the returns to subsidies for wind and solar? What about EV subsidies or energy efficient appliance rebates? How about raising revenue through fuel taxes or cap and trade auctions?

1/: Image In new work with @bsprungkeyser, @RDMetcalfe and Bob Hahn, we analyze 96 US environmental policy changes over the last 25 years. This spans subsidies, nudges and revenue raisers. We use the Marginal Value of Public Funds (MVPF) to analyze each policy.

Here’s what we find:

2/
Jun 14, 2023 10 tweets 4 min read
New Paper Alert 🚨

We estimate the returns to IRS tax audits across the income distribution. We find $1 of IRS spending on audits of top earners delivers more than $12 of tax revenue. Along the way, we provide new evidence of the strong specific deterrence effects of audits. 1/: Image More than $500 billion in tax obligations go unpaid each year in the US. Most of these liabilities are concentrated among high-income taxpayers. Can additional spending on audits recoup those unpaid taxes? How do the returns to audits vary across the income distribution? 2/