This research asks what are the macroeconomic effects of average personal income tax changes in South Africa?

It does this by constructing a new narrative measure for structural personal income tax shocks for SA. It contributes to the empirical literature of fiscal multipliers using a new dataset and identification strategy and investigates the macroeconomic effects of personal income taxes.

1. What is the correlation between a shock and the narrative?
2. Are tax cuts in average personal income tax rates, contractionary or expansionary in the economy?