Laffer curve in a non-Leviathan scenario: a real - effort experiment

Stefania Ottone and Ferruccio Ponzano ()

Economics Bulletin, 2007, vol. 3, issue 48, 1-7

Abstract: The aim of this paper is to look for the presence of the Laffer curve in a non-Leviathan state using tax rates of 30%, 50% and 70%. We gave the players the opportunity to choose their labour supply both under a Welfare – State scenario and a State – of – Nature contract. The main evidence is that a tax rate of 70% is extremely unpopular and significantly decreases subjects' labour supply without any benefit on the tax revenue. On the other hand, an increase of the tax rate from 30% to 50% does not reduce the per capita labour supply while increasing the tax revenue.

Keywords: Laffer (search for similar items in EconPapers)
JEL-codes: C9 H2 (search for similar items in EconPapers)
Date: 2007-10-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.accessecon.com/pubs/EB/2007/Volume3/EB-07C90003A.pdf (application/pdf)

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:ebl:ecbull:eb-07c90003

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().