I am an amateur economist at best, more a person with an economic BS looking to explore data science (I will be using python). I have a theory that I want opinion on that will allow the Fed to raise the interest rate while offsetting the lose in domestic investment by lowering or eliminating the repatriate tax laws.
My assumptions are that raising the interest rates will lower investment overall, lower the money supply, and decrease demand. That lowering the repatriate tax laws will have American firms import a higher level of liquid capital, spur domestic investment, and create jobs.
Ultimately I want to make a formula with as little dependencies as possible where $f(x)+g(y)=0$. $f(x)$ will be the effect on the economy due to the interest rate and $g(y)$ will be the effect of the tax. So if you raise the interest rate $f(x)$ then you must lower the repatriate tax rate $g(y)$.
My questions are:
1) Are you aware of a study like this?
2) Are my assumptions correct?
3) Any advice would be greatly appreciated such as data sources, economic papers on parts of what I am trying to do, possible factors to include.
4) Just looking at it, does it seem logical?