SWEDEN'S LAFFER CURVE: TAXATION AND THE UNOBSERVED ECONOMY

Edgar Feige and Robert T. McGee
Additional contact information
Robert T. McGee: Florida State University

Macroeconomics from University Library of Munich, Germany

Abstract: Recent research on the unobserved economy suggests that the phenomenon has important implications for both macroeconomic policy and public finance. Attention is focused on the public finance implications by developing a simple macro model from which it is possible to derive a Laffer curve. The model reveals that the shape and position of the Laffer curve depend upon the strength of supply side effects, the progressivity of the tax system and the size of the unobserved economy. Using alternative parameterizations of each of these effects, it is possible to obtain rough empirical estimates of the Laffer curve for Sweden.

Keywords: Laffer curve; supply side; unobserved economy; underground economy; tax evasion; tax revenues (search for similar items in EconPapers)
JEL-codes: E31 E6 H2 H26 O17 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2005-01-19
New Economics Papers: this item is included in nep-mac
Note: Type of Document - pdf; pages: 21
References: Add references at CitEc
Citations:

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0501/0501023.pdf (application/pdf)

Related works:
Working Paper: Sweden’s Laffer Curve: Taxation and the Unobserved Economy (1983)
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:wpa:wuwpma:0501023

Access Statistics for this paper

More papers in Macroeconomics from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).