The Laffer curve revisited

摘要: Abstract Laffer curves for the US, EU-14 and individual European countries are compared, using a neoclassical growth model featuring “constant Frisch elasticity” (CFE) preferences. New tax rate data is provided. The US can maximally increase revenues by 30% with labor taxes 6% capital taxes. We obtain 8% 1% EU-14. There, 54% of cut 79% self-financing. consumption curve does not peak. Endogenous human accumulation affect results quantitatively. Household heterogeneity may be important, while transition matters greatly.