The aim of this paper is to look for the presence of the Laffer curve in a non-Leviathan state using tax rates of 30%, 50% and 70%. We gave the players the opportunity to choose their labour supply both under a Welfare – State scenario and a State – of – Nature contract. The main evidence is that a tax rate of 70% is extremely unpopular and significantly decreases subjects’ labour supply without any benefit on the tax revenue. On the other hand, an increase of the tax rate from 30% to 50% does not reduce the per capita labour supply while increasing the tax revenue.

Ottone, S., Ponzano, F. (2007). Laffer curve in a non-Leviathan scenario: a real - effort experiment. ECONOMICS BULLETIN, 3(47), 1-7.

Laffer curve in a non-Leviathan scenario: a real - effort experiment

OTTONE, STEFANIA;
2007

Abstract

The aim of this paper is to look for the presence of the Laffer curve in a non-Leviathan state using tax rates of 30%, 50% and 70%. We gave the players the opportunity to choose their labour supply both under a Welfare – State scenario and a State – of – Nature contract. The main evidence is that a tax rate of 70% is extremely unpopular and significantly decreases subjects’ labour supply without any benefit on the tax revenue. On the other hand, an increase of the tax rate from 30% to 50% does not reduce the per capita labour supply while increasing the tax revenue.
Articolo in rivista - Articolo scientifico
Laffer curve, real-effort experiment
English
1
7
Ottone, S., Ponzano, F. (2007). Laffer curve in a non-Leviathan scenario: a real - effort experiment. ECONOMICS BULLETIN, 3(47), 1-7.
Ottone, S; Ponzano, F
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/5444
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