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Journal of Monetary Economics
Article . 2001 . Peer-reviewed
License: Elsevier TDM
Data sources: Crossref
SSRN Electronic Journal
Article . 2000 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2000
Data sources: EconStor
EconStor
Research . 2000
Data sources: EconStor
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On the Analytics of the Dynamic Laffer Curve

Authors: Agell, Jonas; Persson, Mats;

On the Analytics of the Dynamic Laffer Curve

Abstract

In this paper, we analyze government budget balance within a simple model of endogenous growth. For the AK model, simple analytical conditions for a tax cut to be self-financing can be derived. The critical variable is not the tax rate per se, but the ”transfer-adjusted tax rate”. We discuss some conceptual issues in dynamic revenue analysis, and we explain why previous studies have arrived at seemingly contradictory results. Finally, we perform an empirical study of the transfer-adjusted tax rates of the OECD countries to see which country has the highest potential for fiscal improvements; it turns out that only a few countries have any potential for such ”dynamic scoring”.

Country
Sweden
Keywords

Laffer effects; intertemporal models; dynamic scoring; growth models, Economics, ddc:330, dynamic scoring, intertemporal models, Laffer effects, intertemporal models, dynamic scoring, growth models, O41, Laffer-Kurve, Intertemporales Gleichgewicht, OECD-Staaten, Laffer effects, Haushaltskonsolidierung, growth models, Neue Wachstumstheorie, Nationalekonomi, E62, Theorie, jel: jel:E62, jel: jel:O41

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    influence
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
32
Top 10%
Top 10%
Average
Green
bronze
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