Affordable Access

Tax rate changes and fiscal deficits: an empirical investigation

  • Political Science


This paper shows that changes in effective tax rates on capital income, labour income and consumption affect the incentives that individuals have to work and to accumulate capital, depending on the tax structure of each country. These incentive effects can induce large differences in the time paths of output and government deficits, thus (in)validating the dynamic Laffer curve proposition.

There are no comments yet on this publication. Be the first to share your thoughts.