Download scientific diagram | Curva de Laffer from publication: Una Primera Aproximación al Crimen en la Argentina | The security problem is one of the major. PDF | This article explores the Laffer curve of the personal income tax using a microeconomic approach. After presenting its conceptual definition and. Stephen Moore is chief economist at the Heritage Foundation and a co-author with Arthur Laffer of “An Inquiry Into the Nature and Causes of.

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For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Specifically, the study answered four research questions.

The Pareto-Frontier in a simple Mirrleesian model of income taxation? But the Democratic party, then rooted in the agricultural South, argued tariff reductions would increase revenues by increasing the number of taxable imports.

Skip to main content. However, in some theoretical models, cruva Laffer curve can be discontinuous, leading to an inability to devise a revenue-maximizing tax rate solution. Lottery markets design, micro-structure, and macro-behavior: Journal of Public Economics.

Tax rate Flat Progressive Regressive Proportional. As chief economist for the Office of Management and Budget —72he attracted attention for his supply-side economic theories, which held that reductions in federal taxes on businesses and individuals would lead to increased economic growth and in the long curvs to increased government revenue.


Furthermore, the Laffer curve does not take explicitly into account the nature of the tax avoidance taking place. Besides, both tax rates that makes tax revenues maximum and minimum were not found appropriate with theoretical expectation. The following other wikis use this file: If you have authored this item and are not yet registered with RePEc, we encourage you to do it here.

Laffer curve – Wikipedia

The Republican party, which was then based in the protectionist industrial Northeast, argued that cutting rates would lower revenues.

The Effect of Competition on the Laffer Curve.

Ronald Reagan was thought to have based his economic plan on the idea that cuts in marginal tax rates would increase tax revenues. Laffer curves for consumption, labor and capital taxation are calculated.

Laffer Curve

One implication of the Laffer curve is that reducing or increasing tax rates beyond a certain point is counter-productive for raising further tax revenue. Enter the email address you signed up with and we’ll email you a reset link. Any text you add should be original, not copied from other sources.

It is found that, thus far, Finnish economy is located on the left side of the Laffer peak in labor and in capital taxation. In Durlauf, Steven N. Kitts and Nevis lagfer General contact details of provider: Ineconomists surveyed by the University of Chicago rejected the viewpoint that the Laffer Curve’s postulation of increased tax revenue through a rate lagfer applies to federal US income taxes of the time in the medium term.


Laffer curves for consumption, The structure of the curve may also be changed by policy decisions.

Thank you for your feedback. The original description page was here. First, the model is calibrated to match the data to the Finnish economy. Typical supply-side policy would advocate generally lower income tax and capital gains tax rates to increase the supply of labor and capitalsmaller government and a lower regulatory burden on enterprises to lower costs. The problem is similar to that of the monopolist who must never increase prices beyond the point at which the elasticity of demand exceeds one in absolute value.

Professors Ananiashvili and Papava have produced a masterful synthesis and expansion of existing theories on how taxes impact economic activity and growth. Supply-side economists use it to argue that it is possible to generate higher revenues by cutting tax rates, but evidence does not appear to support this.