Reservations on the classical Laffer curve

Tchai Tavor (), Limor Dina Gonen () and Uriel Spiegel ()
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Tchai Tavor: The Max Stern Academic College of Emek Yezreel, Israel.
Limor Dina Gonen: Ariel University
Uriel Spiegel: Bar-Ilan University

The Review of Austrian Economics, 2021, vol. 34, issue 4, No 4, 479-493

Abstract: 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.

Keywords: Laffer curve; Heterogeneous population groups; Multi-peak points; Tax rates; Tax revenue (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s11138-019-00483-8

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