Reservations on the classical Laffer curve

Tchai Tavor; Limor Dina Gonen; Uriel Spiegel

doi:10.1007/s11138-019-00483-8

Reservations on the classical Laffer curve

Tchai Tavor, Limor Dina Gonen, Uriel Spiegel

Ariel University, Bar-Ilan University

Research output: Contribution to journal › Article › peer-review

Abstract

Throughout the last two decades, some economists have objected to the conventional shape of one peak point on the Laffer curve. This paper examines the reservations presented in the literature and demonstrates the possibility of a Laffer curve with three peak points. Such a shape may be due to the three heterogeneous population groups of younger workers, adult males, and adult females. These groups respond differently to net wage rate changes, thus reducing the applicability of the changing of tax rates by policymakers.

Original language	American English
Pages (from-to)	479-493
Number of pages	15
Journal	Review of Austrian Economics
Volume	34
Issue number	4
DOIs	https://doi.org/10.1007/s11138-019-00483-8
State	Published - 1 Dec 2021

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Keywords

Heterogeneous population groups
Laffer curve
Multi-peak points
Tax rates
Tax revenue

All Science Journal Classification (ASJC) codes

General Economics,Econometrics and Finance
Economics, Econometrics and Finance(all)

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10.1007/s11138-019-00483-8

Cite this

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abstract = "Throughout the last two decades, some economists have objected to the conventional shape of one peak point on the Laffer curve. This paper examines the reservations presented in the literature and demonstrates the possibility of a Laffer curve with three peak points. Such a shape may be due to the three heterogeneous population groups of younger workers, adult males, and adult females. These groups respond differently to net wage rate changes, thus reducing the applicability of the changing of tax rates by policymakers.",

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Reservations on the classical Laffer curve

Abstract

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Keywords

All Science Journal Classification (ASJC) codes

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