The Experts below are selected from a list of 318 Experts worldwide ranked by ideXlab platform
Robert T. Mcgee - One of the best experts on this subject based on the ideXlab platform.
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THE UNOBSERVED ECONOMY AND THE UK Laffer Curve
Social Science Research Network, 2005Co-Authors: Edgar L. Feige, Robert T. McgeeAbstract: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 examining a macro-model model from which it is possible to derive a family of Laffer Curves. The model reveals that the final shape and position of the Laffer Curve depends 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, we obtain rough empirical estimates of the Laffer Curve for the UK. Reference: Journal of Economic Affairs, Vol. 3, No.1, October, 1982, pp.36-42.
David Desmarchelier - One of the best experts on this subject based on the ideXlab platform.
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Are the Laffer Curve and the green paradox mutually exclusive?
Journal of Public Economic Theory, 2017Co-Authors: Stefano Bosi, David DesmarchelierAbstract:In this paper, we study the relationship between the Laffer Curve and the green paradox in the context of a Ramsey model with endogenous labor supply in which pollution increases consumer demand (through a compensation effect). We find that—in the long run—the conditions under which a Laffer Curve and a green paradox emerge are mutually exclusive. Indeed, the Laffer Curve exists under a weak compensation effect, while the green paradox requires a strong effect. Also, we find that, in the short run, limit cycles may arise in the presence of a Laffer Curve, while they never occur under a green paradox.
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Are the Laffer Curve and the Green Paradox mutually exclusive
2016Co-Authors: Stefano Bosi, David DesmarchelierAbstract:To study the relationship between a Laffer Curve and the Green Paradox, we consider a Ramsey model with endogenous labor supply, where pollution increases the consumption demand (compensation effect). In the long run, the conditions for a Laffer Curve and the Green Paradox are mutually exclusive: the Curve exists under a weak compensation effect while the paradox under a strong effect. In the short run, limit cycles arise only if a Laffer Curve exists but never occur in the case of Green Paradox.
Edgar L. Feige - One of the best experts on this subject based on the ideXlab platform.
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THE UNOBSERVED ECONOMY AND THE UK Laffer Curve
Social Science Research Network, 2005Co-Authors: Edgar L. Feige, Robert T. McgeeAbstract: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 examining a macro-model model from which it is possible to derive a family of Laffer Curves. The model reveals that the final shape and position of the Laffer Curve depends 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, we obtain rough empirical estimates of the Laffer Curve for the UK. Reference: Journal of Economic Affairs, Vol. 3, No.1, October, 1982, pp.36-42.
Stefano Bosi - One of the best experts on this subject based on the ideXlab platform.
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Are the Laffer Curve and the green paradox mutually exclusive?
Journal of Public Economic Theory, 2017Co-Authors: Stefano Bosi, David DesmarchelierAbstract:In this paper, we study the relationship between the Laffer Curve and the green paradox in the context of a Ramsey model with endogenous labor supply in which pollution increases consumer demand (through a compensation effect). We find that—in the long run—the conditions under which a Laffer Curve and a green paradox emerge are mutually exclusive. Indeed, the Laffer Curve exists under a weak compensation effect, while the green paradox requires a strong effect. Also, we find that, in the short run, limit cycles may arise in the presence of a Laffer Curve, while they never occur under a green paradox.
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Are the Laffer Curve and the Green Paradox mutually exclusive
2016Co-Authors: Stefano Bosi, David DesmarchelierAbstract:To study the relationship between a Laffer Curve and the Green Paradox, we consider a Ramsey model with endogenous labor supply, where pollution increases the consumption demand (compensation effect). In the long run, the conditions for a Laffer Curve and the Green Paradox are mutually exclusive: the Curve exists under a weak compensation effect while the paradox under a strong effect. In the short run, limit cycles arise only if a Laffer Curve exists but never occur in the case of Green Paradox.
Eugenio J Miravete - One of the best experts on this subject based on the ideXlab platform.
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market power and the Laffer Curve
Econometrica, 2018Co-Authors: Eugenio J Miravete, Katja Seim, Jeff ThurkAbstract:We study commodity taxation and characterize the Laffer Curve, a trade-off between tax rates and revenue, in noncompetitive markets. Pricing in these markets leads to incomplete tax pass-through and agents re-optimize their purchase and pricing decisions in response to any tax change. We use detailed data from Pennsylvania, a state that monopolizes retail sales of alcoholic beverages, to estimate a model of demand for horizontally differentiated products that ties consumers' demographic characteristics to heterogeneous preferences for spirits. We find that under the state's current tax policy, spirits are overpriced. Distillers respond to decreases in the tax rate by increasing wholesale prices, which limits the state's revenue gain to only 13% of the incremental tax revenue predicted under the common assumption of perfect competition. The strategic response of noncompetitive firms to changes in taxation therefore flattens the Laffer Curve significantly.
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market power and the Laffer Curve
2017Co-Authors: Eugenio J Miravete, Katja Seim, Jeff ThurkAbstract:We characterize the trade-off between consumption tax rates and tax revenue -- the Laffer Curve -- while allowing for re-optimization by both consumers and firms with market power. Using detailed data from Pennsylvania, a state that monopolizes retail sales of alcoholic beverages, we estimate a discrete choice demand model allowing for flexible substitution patterns between products and across demographic groups while not imposing conduct among upstream distillers. We find that current policy overprices spirits and that firms respond to reductions in the state's ad valorem tax rate by increasing wholesale prices. The upstream response thus limits the state's revenue gain from lower tax rates to only 14% of the incremental tax revenue predicted under the common assumption of perfect competition. The burden of such naive policy falls disproportionately on older, poorer, uneducated, and minority consumers. Upstream collusion exacerbates these effects.
