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

A-Tier
Journal: Journal of Monetary Economics
Year: 2017
Volume: 87
Issue: C
Pages: 1-12

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:eee:moneco:v:87:y:2017:i:c:p:1-12
Journal Field
Macro
Author Count
2
Added to Database
2026-01-24