On the Laffer Effect in Post-Communist Economies: On the Bases of the Observation of Russian Literature

Problems of Economic Transition, Vol. 45, No. 7, pp. 63-81, 2002

19 Pages Posted: 30 Nov 2012

See all articles by Vladimer Papava

Vladimer Papava

Ivane Javakhishvili Tbilisi State University

Date Written: November 29, 2012

Abstract

Originally the Laffer Curve was formulated in a macroeconomic context, for which reason it is not applicable to individual taxes, but rather to a certain average aggregate tax. The 'corrections' to the Laffer Curve are based on a factor of time. High importance is the question – in which direction the average aggregate tax is changing: upward or downward, when the Laffer Effect always appears a couple of years later. Alternatives of the Laffer Curve with 'Hysteresis' are constructed in the article.

Keywords: Laffer Curve, taxes, supply-side economics, hysteresis

JEL Classification: E62, H21, P26, P35

Suggested Citation

Papava, Vladimer, On the Laffer Effect in Post-Communist Economies: On the Bases of the Observation of Russian Literature (November 29, 2012). Problems of Economic Transition, Vol. 45, No. 7, pp. 63-81, 2002 . Available at SSRN: https://ssrn.com/abstract=2182394

Vladimer Papava (Contact Author)

Ivane Javakhishvili Tbilisi State University ( email )

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