The sufficient statistic approach: Predicting the top of the Laffer curve

• 成果类型: Article
• 署名作者: Badel, Alejandro; Huggett, Mark
• 署名单位: Georgetown University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2017.02.001
• 发表日期: 2017
• 页码: 1-12
• 关键词: Sufficient statistic; Laffer curve; MARGINAL TAX RATE; elasticity

摘要

A formula for the revenue maximizing top tax rate is derived as a function of three elasticities. The formula applies to static models and to steady states of dynamic models and is relevant for the top tax rate on any component of income. The formula is applied to several classic models. The application of the formula is also illustrated using a quantitative human capital model. (C) 2017 Elsevier B.V. All rights reserved.