The Laffer curve revisited. Trabandt, M. & Uhlig, H. Journal of Monetary Economics, 58(4):305–327, May, 2011. Paper doi abstract bibtex Laffer curves for the US, the EU-14 and individual European countries are compared, using a neoclassical growth model featuring “constant Frisch elasticity” (CFE) preferences. New tax rate data is provided. The US can maximally increase tax revenues by 30% with labor taxes and 6% with capital taxes. We obtain 8% and 1% for the EU-14. There, 54% of a labor tax cut and 79% of a capital tax cut are self-financing. The consumption tax Laffer curve does not peak. Endogenous growth and human capital accumulation affect the results quantitatively. Household heterogeneity may not be important, while transition matters greatly.
@article{trabandt_laffer_2011,
title = {The {Laffer} curve revisited},
volume = {58},
issn = {0304-3932},
url = {http://www.sciencedirect.com/science/article/pii/S030439321100064X},
doi = {10.1016/j.jmoneco.2011.07.003},
abstract = {Laffer curves for the US, the EU-14 and individual European countries are compared, using a neoclassical growth model featuring “constant Frisch elasticity” (CFE) preferences. New tax rate data is provided. The US can maximally increase tax revenues by 30\% with labor taxes and 6\% with capital taxes. We obtain 8\% and 1\% for the EU-14. There, 54\% of a labor tax cut and 79\% of a capital tax cut are self-financing. The consumption tax Laffer curve does not peak. Endogenous growth and human capital accumulation affect the results quantitatively. Household heterogeneity may not be important, while transition matters greatly.},
language = {en},
number = {4},
urldate = {2020-04-10},
journal = {Journal of Monetary Economics},
author = {Trabandt, Mathias and Uhlig, Harald},
month = may,
year = {2011},
pages = {305--327}
}
Downloads: 0
{"_id":"xhNxFiE6SJaZhWZYs","bibbaseid":"trabandt-uhlig-thelaffercurverevisited-2011","authorIDs":[],"author_short":["Trabandt, M.","Uhlig, H."],"bibdata":{"bibtype":"article","type":"article","title":"The Laffer curve revisited","volume":"58","issn":"0304-3932","url":"http://www.sciencedirect.com/science/article/pii/S030439321100064X","doi":"10.1016/j.jmoneco.2011.07.003","abstract":"Laffer curves for the US, the EU-14 and individual European countries are compared, using a neoclassical growth model featuring “constant Frisch elasticity” (CFE) preferences. New tax rate data is provided. The US can maximally increase tax revenues by 30% with labor taxes and 6% with capital taxes. We obtain 8% and 1% for the EU-14. There, 54% of a labor tax cut and 79% of a capital tax cut are self-financing. The consumption tax Laffer curve does not peak. Endogenous growth and human capital accumulation affect the results quantitatively. Household heterogeneity may not be important, while transition matters greatly.","language":"en","number":"4","urldate":"2020-04-10","journal":"Journal of Monetary Economics","author":[{"propositions":[],"lastnames":["Trabandt"],"firstnames":["Mathias"],"suffixes":[]},{"propositions":[],"lastnames":["Uhlig"],"firstnames":["Harald"],"suffixes":[]}],"month":"May","year":"2011","pages":"305–327","bibtex":"@article{trabandt_laffer_2011,\n\ttitle = {The {Laffer} curve revisited},\n\tvolume = {58},\n\tissn = {0304-3932},\n\turl = {http://www.sciencedirect.com/science/article/pii/S030439321100064X},\n\tdoi = {10.1016/j.jmoneco.2011.07.003},\n\tabstract = {Laffer curves for the US, the EU-14 and individual European countries are compared, using a neoclassical growth model featuring “constant Frisch elasticity” (CFE) preferences. New tax rate data is provided. The US can maximally increase tax revenues by 30\\% with labor taxes and 6\\% with capital taxes. We obtain 8\\% and 1\\% for the EU-14. There, 54\\% of a labor tax cut and 79\\% of a capital tax cut are self-financing. The consumption tax Laffer curve does not peak. Endogenous growth and human capital accumulation affect the results quantitatively. Household heterogeneity may not be important, while transition matters greatly.},\n\tlanguage = {en},\n\tnumber = {4},\n\turldate = {2020-04-10},\n\tjournal = {Journal of Monetary Economics},\n\tauthor = {Trabandt, Mathias and Uhlig, Harald},\n\tmonth = may,\n\tyear = {2011},\n\tpages = {305--327}\n}\n\n","author_short":["Trabandt, M.","Uhlig, H."],"key":"trabandt_laffer_2011","id":"trabandt_laffer_2011","bibbaseid":"trabandt-uhlig-thelaffercurverevisited-2011","role":"author","urls":{"Paper":"http://www.sciencedirect.com/science/article/pii/S030439321100064X"},"downloads":0},"bibtype":"article","biburl":"https://api.zotero.org/users/1734741/collections/CIRF7AI5/items?key=75Z3Aya2icbZlhqU6fY6tBNH&format=bibtex&limit=100","creationDate":"2020-06-28T02:34:23.936Z","downloads":0,"keywords":[],"search_terms":["laffer","curve","revisited","trabandt","uhlig"],"title":"The Laffer curve revisited","year":2011,"dataSources":["mgFokuaBg76SFddH4"]}