Auerbach and Slemrod (1997) address numerous features
of TRA on economic growth and its components. They
suggest that, although there may have been substantial
impacts on the timing and composition of economic
activity—for example, a reduction in tax sheltering
activity—that there was little effect on the overall level of
economic activity. They conclude that there were small
impacts on saving, labor supply, entrepreneurship and
other productive activities. Although they do not provide
an overall estimate for the impact on economic growth, it
seems clear from their conclusions about microeconomic
impacts and from the lack of aggregate growth in the