A Sensitivity Analysis of a Detailed Macroeconomic Analysis of President Biden's 2020 Campaign Tax Proposals

In this paper, we extend the analysis in DeBacker et al. (2021) and consider the sensitivity of the simulation results to the values of important, exogenous parameters. Like any model, the OG-USA model used in DeBacker et al. (2021) relies on a set of assumptions and the calibration of parameter values. Unlike most models, OG-USA is well documented and the source code freely available, allowing anyone to simulate the model under alternative assumptions and parameterizations. Here, we simulate the model under alternative parameterizations to understand how sensitive the results from our analysis of the Biden proposals may be to the choice of parameter values.  Our findings show that while the budgetary and economic effects do vary with changes in relevant parameters, the general findings of DeBacker et al. (2021) obtain for reasonable parameterizations.