How Do Laffer Curves Differ across Countries?
Chapter in NBER book Fiscal Policy after the Financial Crisis (2013), Alberto Alesina and Francesco Giavazzi, editors (p. 211 - 249)
This chapter examines how Laffer curves differ across countries in the United States and the EU-14. It shows that the differences between Laffer curves arise solely due to differences in fiscal policy; that is, the mix of distortionary taxes, government spending, and government debt. Labor income and consumption taxes are important for accounting for most of the cross-country differences.
How Do Laffer Curves Differ Across Countries?, Mathias Trabandt, Harald Uhlig
Commentary on this chapter: Comment, Jaume Ventura
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