Unal, Umut2025-10-242025-10-2420151582-61632537-6071https://hdl.handle.net/20.500.12899/4093This paper characterizes the dynamic effects of net tax and government spending shocks on several macroeconomic aggregates in four OECD countries using a structural VAR approach. For the first time in the literature, I propose a structural decomposition of total net taxes into four components: corporate income taxes, income taxes, indirect taxes and social insurance taxes. The paper provides estimates of the responses of macroeconomic aggregates to innovations in these net tax components. Decompositions of total net tax innovations show that net tax components have different impacts on economic variables depending upon the strength of wealth, substitution, and income effects reflecting the structure of the economies.eninfo:eu-repo/semantics/closedAccessFiscal shocks; Tax policy; decomposition; income effect; wealth effectArticle183120135WOS:000362387300007Q4