Sweden'S Laffer Curve: Taxation And The Unobserved Economy
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.Download Info
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Paper provided by EconWPA in its series Macroeconomics with number 0501023.Length: 21 pages
Date of creation: 19 Jan 2005
Date of revision:
Handle: RePEc:wpa:wuwpma:0501023
Note: Type of Document - pdf; pages: 21
Contact details of provider:
Web page: http://128.118.178.162
Related research
Keywords: Laffer curve; supply side; unobserved economy; underground economy; tax evasion; tax revenues;Other versions of this item:
- Feige, Edgar L & McGee, Robert T, 1983. " Sweden's Laffer Curve: Taxation and the Unobserved Economy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 85(4), pages 499-519.
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-01-23 (All new papers)
- NEP-MAC-2005-01-23 (Macroeconomics)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Hana Zídková, 2012. "Discussion Of Methods For Estimating The Shadow Economy," Acta Oeconomica Pragensia, University of Economics, Prague, vol. 2012(6), pages 3-17.
- Enrico Colombatto, 2012. "Fiscal Harmonization: Credible Goal or Trojan Horse?," Working papers 010, Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
- Bayindir-Upmann, Thorsten & Raith, Matthias G., 2003. "Should high-tax countries pursue revenue-neutral ecological tax reforms?," European Economic Review, Elsevier, vol. 47(1), pages 41-60, February.
- Jan Hanousek & Filip Palda, 2002. "The Evolution of Tax Evasion in the Czech Republic: A Markov Chain Analysis," Public Economics 0205002, EconWPA.
- Gogas, Periklis, 1997. "On the construction of cersonal, corporate and effective overall marginal tax rates for Canada (1977-1992)," MPRA Paper 1465, University Library of Munich, Germany.
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