A Theoretical Derivation of the Laffer Curve and the Effect of the Tax on Wage and Employment

Casimiro, Jr. Miranda
Additional contact information
Casimiro, Jr. Miranda: School of Economics, University of the Philippines Diliman

No 199706, UP School of Economics Discussion Papers from University of the Philippines School of Economics

Abstract: The Laffer curve showing tax revenue as a function of the tax on the prevailing money wage is derived from the aggregate supply of labor function. Consequently, the possible trade-off between tax revenue and employment (or total output) is considered. Then the tax is shown to result in wage rigidity downward even under competitive condition. Some policy implications and relevant theoretical issues are noted.

Date: 1997-06
References: Add references at CitEc
Citations:

Published as UPSE Discussion Paper No. 1997-06, June 1997

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:phs:dpaper:199706

Access Statistics for this paper

More papers in UP School of Economics Discussion Papers from University of the Philippines School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by RT Campos ().