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The Laffer Curve in a Frictional Labor Market

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  • Zanetti Francesco

    (University of Oxford)

Abstract

This paper investigates whether labor market search frictions affect the long run responses of government revenues to changes in income taxes. The findings show that labor market parameters may significantly change the tax base and affect the reaction of government receipts in the long run.

Suggested Citation

  • Zanetti Francesco, 2012. "The Laffer Curve in a Frictional Labor Market," The B.E. Journal of Macroeconomics, De Gruyter, vol. 12(1), pages 1-23, September.
    • Handle: RePEc:bpj:bejmac:v:12:y:2012:i:1:n:29
    DOI: 10.1515/1935-1690.2014
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    References listed on IDEAS

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    Cited by:

    1. Ghassibe, Mishel & Zanetti, Francesco, 2022. "State dependence of fiscal multipliers: the source of fluctuations matters," Journal of Monetary Economics, Elsevier, vol. 132(C), pages 1-23.
    2. Kotamäki Mauri, 2016. "Participation Tax Rates in Finland, Earnedincome Tax Credit Investigated," Discussion Papers 107, Aboa Centre for Economics.
    3. Kotamäki Mauri, 2017. "Laffer Curves and Home Production," Nordic Tax Journal, Sciendo, vol. 2017(1), pages 59-69, January.

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    Keywords

    Laffer curve; labor market frictions;

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